Implementation Of Fiscal Policies Research Articles

EFFECT OF DEPOSITS AND NON-PERFORMING LOANS ON BANK PROFITABILITY – A CASE STUDY ON CONVENTIONAL COOPERATIVE BANK OF BARODA REGION

The banking sector plays a vital role in providing essential financial services, facilitating the allocation of funds to productive ventures, and aiding in the implementation of government fiscal and monetary policies. Historically, Non-Performing Assets (NPAs) have posed significant challenges for banks, but reducing NPAs has now become a top priority. The strength of a nation's economy relies heavily on the health of its cooperative banking sector. This study analyzes the non-performing assets (NPAs) of The Pragati Co-operative Bank Ltd. over a six-year period from 2017-18 to 2022-23. The research examines various aspects related to NPAs, including gross NPAs, net NPAs, provisions made towards NPAs, loans and advances, deposits, and relevant ratios such as net NPA ratio, provision coverage ratio, and credit-to-deposit ratio. The data analysis reveals that the bank maintained a zero net NPA throughout the period, indicating effective provisioning strategies. While gross NPAs fluctuated, the provision coverage ratio remained strong, suggesting the bank's ability to withstand asset quality pressures. The study also investigates the relationship between gross NPAs and net profits using correlation and regression analysis, finding a positive correlation but minimal significant impact of gross NPAs on profitability. Overall, the research highlights The Pragati Co-operative Bank Ltd.'s proactive approach to NPA management, financial stability, and adaptability to changing market conditions.

How does fiscal policy affect the green low-carbon transition from the perspective of the evolutionary game?

The implementation of effective fiscal policy is an inevitable choice to help green low-carbon transition and strengthen the construction of ecological civilization. This paper constructs a dynamic model of the tripartite evolutionary game among the central government, the local government and the high pollution and high carbon emission (Double-high) enterprises. Accordingly, we examine the impact of the central government's regulatory mechanism and local government's implementation intensity on green and low-carbon transition. Taking Comprehensive Demonstration Cities of Energy Conservation and Emission Reduction Fiscal Policies as the entry point of the study, a staggered differences-in-differences model is used for empirical evaluation, which reveals the effect of fiscal policy on green and low-carbon transition. The theoretical modeling shows that the strategies of Double-high enterprises are affected by the interaction between the central government and local governments, and there is diversity in the strategy stability and equilibrium state of each subject. Under the premise that the central government pays attention to the motives of enterprises and local governments, the fiscal subsidies, tax incentives and penalties of local governments, as well as the supervision, reward and punishment mechanisms and transfer payments of the central government, directly shape the impact of fiscal policy on green and low-carbon transition. The empirical results show that effective fiscal policy can promote green low-carbon transition, in which fiscal decentralization has a moderating role. Finally, the paper emphasizes the importance of the leading role of the central government and the implementation capacity of local governments, as well as the key role of internal changes within firms in addressing the relationship between emissions reduction and development.

GOVERNMENT'S STRATEGY TO OVERCOME THE IMPACT OF FISCAL AND MONETARY POLICY ON THE INDONESIAN ECONOMY

The government's strategy was previously under pressure to improve the economy, one of which is the implementation of fiscal policy. This is because the Covid-19 pandemic in previous years had an impact on all sectors, especially the financial sector. Now with its fiscal policy adjusting between government revenue and spending. Part of the government's fiscal policy during the pandemic, namely the tax relief program aimed at easing the burden on taxpayers and reorienting the 2020 State Budget to increase government spending. Through in-depth research and analysis of the government's strategy for overcoming the impact of fiscal and monetary policies on the economy, it is hoped that a better understanding of government actions in encouraging inclusive and sustainable economic growth in the Indonesian economy will be provided.

Causality in the Relationship between Economic Growth and Compensation

Compensation of labour and economic growth are two economic variables of particular interest to researchers. There have been many theories linking these quantities in causal relationships. Similarly, some studies suggest that changes in wages lead to economic growth, while others contradict this and suggest that economic growth is the cause of changes in wages. It is important to determine which of these quantities is the cause and which is the effect, as this allows for a more effective implementation of fiscal policy. The research presented in this article addresses this issue. They are based on data from OECD countries for the years 2003–2021. Correlation and cointegration analysis were used in the description. Both general dependencies, i.e., based on annual averages obtained for each country, and specific dependencies, i.e., for each country separately, have been examined. The general conclusion is that current compensation acts as a brake on economic growth, while current economic growth stimulates future compensation. Such results can be the basis for designing government programmes aimed at stimulating the economy rather than regulating wages. However, the specifics of some countries differ from the general conclusion. However, these countries are in the minority.

The Financial Expenditure in the Field of Rural Teacher Construction Under the Background of Poverty Alleviation Through Education ---Take Educational Poverty Alleviation in Poverty-stricken Counties in Shaanxi Province as an Example

As a fundamental solution to block the intergenerational transmission of poverty, poverty alleviation through education is still the direction and focus of Chinese poverty governance in the post-poverty era. Faced with the existing problems in poverty alleviation through education concerning the young and middle-aged rural teachers could be introduced but cannot stay, as well as various psychological and living needs problems of rural teachers. In order to ensure the continuous inflow of fresh blood in the construction of rural teachers, it urgently needs strong and precise support from financial policies. This paper takes an example of education poverty alleviation in poor counties of Shanxi Province. With the help of literature review and interviewing methods, this paper demonstrates the actual internal and external problems faced by the construction of rural teachers, such as the personal promotion of rural teachers, psychological problems, and the organizational structure of teachers. From the perspective of financial solutions, this paper explores the basic ideas of the construction of rural teachers and then puts forward new ideas on the construction of rural teachers in terms of structural adjustment of fiscal policy implementation.

Government debt and fiscal multipliers in the era of population aging

Abstract Over the past decade, the most salient changes in macroeconomic conditions in developed economies have included rising government debt and population aging, which are strongly correlated with each other. This paper investigates fiscal multipliers by disentangling the effects of population aging from those of government debt. Our analysis, which uses heterogeneous panel data from 24 OECD economies, shows that while fiscal policy is ineffective for economies with high-debt levels, it is effective for economies with low-debt levels. Furthermore, the estimation results reveal that fiscal policy is ineffective for aged economies, regardless of the level of government debt. However, for nonaged economies, while fiscal policy leads to negative effects on output in times of high debt, its positive effects are more pronounced in times of low debt. Our results suggest that, for the effective implementation of fiscal stimulus policies, policy-based stimulation of employment in the labor market is essential.

The Challenges of Tobacco Fiscal Policy Implementation in Mexico From the Perspective of Key Actors.

Raising tobacco taxes is considered the most effective strategy to avoid smoking initiation and discourage its use, especially among vulnerable groups. However, few low- and middle-income countries have adopted high tobacco taxes. Raising taxes is, therefore, an opportunity to strengthen and accelerate tobacco control. The objective of this study is to analyze the barriers and facilitators to the tobacco tax increase in Mexico. Based on the Governance Analytical Framework, data were generated through 17 in-depth interviews with key intersectoral actors for fiscal policy. The interviews were transcribed and coded according to Hufty's theory of governance. Robust scientific evidence, intersectoral coordination, and the presence of "champions" boosted progress in tobacco control (facilitators). The main barriers were the incomplete implementation of the World Health Organization-Framework Convention on Tobacco Control (WHO-FCTC) and MPOWER package and lack of commitment ("political will") by government decision makers and legislators, misinformation about the effects of tobacco taxes, and strong tobacco industry interference. Robust evidence is necessary but not sufficient to advance the implementation of the MPOWER (WHO-FCTC) actions. To achieve tobacco tax increases and public policies that protect people from unhealthy products in general, the implementation of policies or legal frameworks against industry interference in the development of public policies is imperative. By analyzing the barriers and facilitators to increasing the tobacco tax in Mexico, this study identifies two key messages: (1) The need to sensitize legislators and the general population to the problem of smoking not only through epidemiological data but also through testimonies that highlight the life experiences and adversities faced by people who smoke. (2) The need for a regulatory framework to prevent industry interference in public affairs and conflicts of interest. The same framework could be very useful for public health policies to control the consumption of ultra-processed food products or alcohol.

Fiscal Policy and Resilience of the Tourism Industry Against the COVID-19 Pandemic

The tourism sector is encountering a global crisis as a consequence of the COVID-19 pandemic. This article aimed to identify and analyze the implementation and impact of fiscal policy on the resilience and sustainability of tourism industry businesses in Indonesia amid the COVID-19 pandemic. An exploratory descriptive qualitative method was used in this research through in-depth interviews with tourism sector business actors in Yogyakarta City, Sleman Regency, Bantul Regency, and Magelang Regency on the implementation of fiscal policy of tax relief for relevant tourism business during the pandemic. The results of the research identified the impact of implementing fiscal policy on business resilience in the tourism sector which is more befitting for medium and large business categories, whilemicro and small businesses could only take advantage of fiscal policy in the form of tax relief, which according to participants is transparent, easy to implement, and does not have a detrimental impact on future. This research contributes to theory, practice, and policy by providing an overview of the impact of environmental factors on the sustainability of tourism sector businesses, the government's response to the crisis, the impact of fiscal policy implementation on the resilience of tourism sector businesses, and input for the government in making future policy.

Ukrainian unitarism: development trends, current state, general and specific characteristics

The article examines the problems of unitarism and its influence on determining the form of the state system, as a political-territorial organization of the state and the nature of the interaction between the state and its constituents. The theoretical and practical aspects of the implementation of unitarism, the genesis of its ideas and their research in domestic legal thought are analyzed. Emphasis is placed on the historically progressive role of unitarism in the state-building process, namely in ensuring the state's defense capability, control over internal order, implementation of fiscal policy, etc. The proposed characterization of unitarism as a political and socio-economic supersystem, its components. The main trends in the development of unitarism as a natural phenomenon in the modern era and the characteristic features of the unitarystate, both general and special, which express its specific characteristics, are analyzed. A unitary state, depending on the level of centralization, can be decentralized as well as centralized. Key words: Ukraine, unitarism, essence and content, national opinion, principles,trends, state, autonomy, federation, state system.

Uncovering the mystery of financial development in mitigating CO2 emissions in China: A spatial dependence and heterogeneity perspective

ABSTRACT Carbon dioxide (CO2) emission mitigation has recently been a critical policy-making concern in the financial area. To address this concern, we examine whether and to what extent financial development reduces CO2 emissions in China from a spatial dependence and heterogeneity perspective. The empirical results of applying a random effects eigenvector spatial filtering (RE-ESF) model and a RE-ESF with non-spatially varying coefficients (RE-ESF-SNVC) model to a provincial panel dataset over the period 1997 − 2017 indicate better goodness-of-fit due to the consideration of spatial effects. The role of financial development in mitigating CO2 emissions is confirmed at both the global level by using the RE-ESF model and the local level by using the RE-ESF-SNVC model. Moreover, the contributions of financial development display clear regional disparities, suggesting the inclusion of spatial heterogeneity when developing financial policies for CO2 emission mitigation. However, such contributions are restricted by financial constraints which increase CO2 emissions globally and locally, requiring a balance between financial development and financial constraints when expanding bank loans. Additionally, the one-way analysis of variance reveals the existence of a geographically dividing line approximately connecting the easternmost tip of Xinjiang and the easternmost tip of Fujian. It is observed that provinces above the line generally have stronger impacts of financial development on carbon emission reduction, while impacts in provinces below the line are generally weaker. These findings encourage the implementation of proactive fiscal and monetary policies to promote financial development. Considering financial constraints, cross-provincial and province-specific financial policies should be balanced when allocating more financial resources to provinces with greater contributions of financial development to CO2 emission mitigation.

FISCAL POLICY OF UKRAINE IN THE CONTEXT OF EUROPEAN INTEGRATION: ORGANIZATIONAL AND LEGAL PROBLEMS OF IMPLEMENTATION

The relevance of the chosen issue is due to the fact that in the face of negative external and internal factors, the economic system of the state is under threat of destruction, which requires an appropriate response from the state authorities. Therefore, in order to overcome or minimize these challenges, as well as to promote healthy macroeconomic environment, fiscal policy can be used as a powerful tool for regulating economic activity. The purpose of the article is to analyze the institutional problems of implementing fiscal policy in Ukraine in the context of European integration. The systemic-structural method, systemic method, critical analysis method, formal-and-legal method, and analytical methods were used to achieve this goal. The normative basis of the study is the legal acts of Ukraine, while the scientific framework of this study is primarily the interpretation of basic concepts, notably, “fiscal policy». The content and elements of the fiscal policy are defined. The essence and system of fiscal policy bodies, which are divided into bodies of general and special competence, are determined. The shortcomings of the organizational and legal regulation of fiscal policy in Ukraine in the context of European integration are analyzed. The foreign experience of implementing fiscal policy is reviewed. It is concluded that there is an objective need to develop a concept for improving the fiscal policy of Ukraine in the context of European integration, the content of which wouldvf be aimed at a gradual conceptual transition of Ukraine to the model of fiscal policy of the EU member states. Furthermore, taking into account the lack of criteria for determining the efficiency and effectiveness of the state’s activities in the economic sphere, the need to elaborate a mechanism that allows assessing the activities of state bodies in terms of spending the state’s financial resources is established. The practical value of this study lies in the fact that the proposals set out in the article are aimed at improving the implementation of fiscal policy in Ukraine, which will facilitate its integration into the European space.

The Effect of Inflation on Economic Growth in Tanzania

The research examines the effect of inflation on economic growth in Tanzania. The study employs the secondary time series data from 1970 to 2020 taken from the Bank of Tanzania, and the VECM is used to find the cointegration between variables to show the short-run and long-run dynamics. Graphical analysis and Augmented Dickey-Fuller tests are conducted to find the unit root in the model. All variables are stationary and integrated in the same order I (1). The results show that the error correction is significantly negative. That is, the annual rate of adjustment required to achieve long-run equilibrium is 28.31 percent. Based on the findings in the short-run, the extended money supply and interest rates have negative and insignificant effects on GDP, while the exchange rate has an inversely significant effect on GDP. Inflation targeting has a favourable insignificant effect on GDP. Long-run results show that extended money supply, exchange rates, and interest rates have positive significant effects on economic growth, whereas inflation targeting has negative significant effects on GDP. It is recommended that the government, policymakers, and financial institutions focus on managing inflation by the prudent implementation of fiscal and monetary policies and maintaining a regulation of interest rates, the extended money supply, and real exchange rates also inflation targeting should be emphasised by improving the central bank's communication, transparency, and accountability to avoid inflation volatility and stimulate economic growth.

The Effect of Inflation on Economic Growth in Tanzania for the Period of 1970-2020

The research examines the effect of inflation on economic growth in Tanzania. The study employs the secondary time series data from 1970 to 2020 taken from the Bank of Tanzania, and the VECM is used to find the cointegration between variables to show the short-run and long-run dynamics. Graphical analysis and Augmented Dickey-Fuller tests are conducted to find the unit root in the model. All variables are stationary and integrated in the same order I(1). The results show that the error correction is significantly negative. That is, the annual rate of adjustment required to achieve long-run equilibrium is 28.31 percent. Based on the findings in the short-run, the extended money supply and interest rates have negative and insignificant effects on GDP, while the exchange rate has an inversely significant effect on GDP. Inflation targeting has a favourable insignificant effect on GDP. Long-run results show that extended money supply, exchange rates, and interest rates have positive significant effects on economic growth, whereas inflation targetinghas negative significant effects on GDP. It is recommended that the government, policymakers, and financial institutions focus on managing inflation by the prudent implementation of fiscal and monetary policies and maintaining a regulation of interest rates, the extended money supply, and real exchange rates also inflation targeting should be emphasised by improving the central bank's communication, transparency, and accountability to avoid inflation volatility and stimulate economic growth.

An analysis of the government revenue–expenditure nexus: A wavelet approach for the Romanian case

The turbulent economic environment of the last decades, the social effects associated with the responsibilities of the state to support the development of the green economy, and the increase of involvement in sustainable social inclusion make it necessary to increase budget revenues. Evaluating the link between government revenues and expenditures is a complex approach defined by several factors related to tax compliance and the perception of the efficiency of the expenditure. In addition, recent endogenous and exogenous shocks have considerably influenced the fundamentals of long-term fiscal policy and budget balancing. The type of relationship between government revenue and expenditure is analyzed to identify the leading and lagging variables, and the wavelet approach and monthly data for Romania for 2000–2021 are used. In various periods, the revenue led the expenditure, or vice versa. The spend–tax and tax–spend hypotheses are confirmed for different periods. The analysis highlights the intervals of behavioral asymmetry, which helps to monitor the implementation of fiscal policy. Also, the results could represent a starting point for outlining measures in the fiscal policy area.

The health and economic burden associated with sugar-sweetened beverage consumption in Trinidad and Tobago.

In Trinidad and Tobago, non-communicable diseases (NCDs) are the leading cause of death. Unhealthy diet is one modifiable NCD risk factor, which contributes to the NCD burden. The consumption of sugar-sweetened beverages (SSBs) has been associated with an increased risk of NCDs. The aim of this paper is to estimate the burden of disease and economic costs associated with the consumption of SSBs in Trinidad and Tobago as evidence to support the implementation of health and fiscal policies on SSB consumption. The results of this study were obtained through the use of a mathematical model which used a comparative risk assessment approach to estimate the health and economic burden associated with SSB intake, by sex and age. Estimates for one year showed that SSB consumption was associated with approximately 15,000 cases of overweight and obesity in adults and 11,700 cases in children, 28% of all the cases of diabetes and overall, an estimated 387 deaths and 9000 years of healthy life were lost due to premature death and disability. Approximately US$23.1 million was spent in the public healthcare system to treat diseases associated with consumption of sugary beverages. The consumption of SSBs is associated with increases in diseases, deaths and rising healthcare costs in Trinidad and Tobago. It is hoped that the results of this study will provide an added rationale and impetus for the implementation of policies to reduce the consumption of SSBs.

Can the green credit policy stimulate green innovation of heavily polluting enterprises in China?

Introduction: The requirement for more funds has been a significant challenge for China’s heavily polluting enterprises (HPEs) to embark on green innovation.Methods: This study takes China’s 2012 Green Credit Guidelines (GCGs) as a quasi-natural experiment to examine their effect on the quality and quantity of green innovation in HPEs. Using the data of Chinese listed companies from 2007 to 2020 and the difference-in-differences (DID) model.Results: We found that the Green Credit Guidelines could significantly improve the number of enterprises’ green innovation but not their quality.Discussion: As part of the potential solutions, this study proposes 1) the implementation of specific green fiscal policies to complement the existing green credit policies by the government, 2) a more comprehensive range of green financing products by financial institutions, and 3) the active development of funding from non-bank sources, such as venture capital or commercial credit.

Implementation of Fiscal and Monetary Policy During the COVID-19 Crisis

Following the emergence of the global pandemic caused by COVID-19, governments have begun the process of stabilizing the shocks caused by the pandemic through macroeconomic policy id Est through fiscal policy and monetary policy. That is why it is a modern, new, and relevant topic for study. This work attempts to provide a general descriptive overview of how countries around the world have responded and continue to respond to the shock caused by the COVID-19 pandemic, in order to differentiate among policies and country types. Furthermore, this work provides insight into the relationship of fiscal and monetary policies, their interaction with inflation and the factors that determine and affect country policy responses through applying an econometric method.

Фіскальні правила в забезпеченні боргової безпеки України

The aim of the article is to deepen and develop the scientific foundations of disclosure of the essence and significance of fiscal rules in the budget process, the features of their practical application in the countries of the world in the context of strengthening the debt security of Ukraine. The article systematizes fiscal rules by kinds, provides an essential characterization, identifies the disadvantages and advantages of their practical application in order to manage the debt security of the State. The popularity and frequency of application of various kinds of fiscal rules in the budget process of 106 countries of the world for the period from 1990 to 2021 are determined, some visual graphs are built. The distribution of fiscal rules by kinds in the context of economic groups of the countries of the world is carried out, an assessment of their effectiveness in the implementation of counter-cyclical fiscal policy is provided. The practice of using fiscal rules in the budget process of Ukraine is disclosed, the reasons for violation of their marginal indicators during military aggression are determined. The need to use a combination of different kinds of fiscal rules in order to achieve positive effects on debt security and level the cyclical nature of fiscal policy is emphasized. Proposals for improving the process of public debt management in the context of ensuring the optimal level of debt security of Ukraine are substantiated. Prospect for further research in this direction is to prove the need to restore the system of fiscal rules after the end of the war and bring it to the requirements of the European Union, taking into account the European integration vector of Ukraine’s development.

Economic liberation or economic distress: Evaluation of Zimbabwe’s foreign exchange circus and its impact on the financial system

Zimbabwe's economy generates a large amount of foreign currency from a number of sources but the country is nevertheless experiencing a serious foreign exchange crisis. In spite of substantial forex revenues, the country is plagued by excessive inflation and currency instability. The study looks into how Zimbabwe's currency crisis has affected the financial systems. The interplay between the supply of money, the rate of inflation, the movement in the exchange rate, and spending by government have been examined to understand reasons of the currency crisis in Zimbabwe. The research was hinged on the interpretivist paradigm and a quantitative approach used for data analysis as predestined by the purpose of this research. Secondary data were reviewed for the analysis. Descriptive statistics was employed for the data analysis, correlation coefficient was employed to evaluate the level of interaction between the variables. The findings showed that the exchange rate between the local currency and US dollar declined from ZWL 24.60 to ZWL 810 between January 2020 and November 2022 antagonizing the money supply growth at the same period, from ZWL 36.27bn to ZWL 2.07tn respectively. The foreign currency premium significantly fell to 32% as of August 2022. It was therefore recommended that since the excessive expansion of the money supply through borrowing appears to be the main issue causing the foreign exchange crisis, the Zimbabwean government must reduce its borrowing to prevent fiscal deficits. Secondly, the government should intervene in the pricing distortions caused by numerous players as a result of the absence of a market-wide consensus exchange rate. Thirdly, there should be implementation of fiscal rationalization policies and adherence to the requirements of the Zimbabwe Debt Management Act. Further studies could concentrate on examining the macro factors that lead to this economic distress.

Effect of Inflation on Economic Growth in Tanzania for the Period from 1970 to 2020

The research examines the effect of inflation on economic growth in Tanzania. The study employs the secondary time series data from 1970 to 2020 taken from the Bank of Tanzania, and the VECM is used to find the cointegration between variables to show the short-run and long run dynamics. Graphical analysis and Augmented Dickey-Fuller tests were conducted to find the unit root in the model. All variables were stationary and integrated in the same order I(1). The results show that the error correction was significantly negative. That is, the annual rate of adjustment required to achieve long-run equilibrium was 28.31 percent. Based on the findings in the short-run, the extended money supply and interest rates had negative and insignificant effects on GDP, while the exchange rate had an inversely significant effect on GDP. Inflation targeting had a favourable insignificant effect on GDP. Long-run results show that extended money supply, exchange rates, and interest rates had positive significant effects on economic growth, whereas inflation targeting had negative significant effects on GDP. It is recommended that the government, policymakers, and financial institutions focus on managing inflation by the prudent implementation of fiscal and monetary policies, and maintaining a regulation of interest rates, the extended money supply, and real exchange rates also inflation targeting should be emphasized by improving the central bank's communication, transparency, and accountability to avoid inflation volatility and stimulate economic growth.