Ministry Of Finance Research Articles

Determinan Kinerja Keuangan Provinsi Gorontalo Tahun 2017-2022

This study aims to analyze the effect of Local Revenue, General Allocation Fund, General Allocation Fund, Special Allocation Fund and Revenue Sharing Fund on the Financial Performance of Gorontalo Province Local Government. The data used in this study is secondary data sourced from the Directorate General of Balance of the Ministry of Finance of the Republic of Indonesia obtained from 6 regencies / cities in Gorontalo Province. This study uses Multiple Linear Regression Analysis of Panel data using the Fixed Effect Model (FEM). The results of this study indicate that 1). Regional Original Revenue has a positive and significant effect on Local Government Financial Performance, meaning that every increase in PAD by 1 rupiah can improve Regional Financial Performance. 2). The General Allocation Fund has a positive and significant effect on Regional Financial Performance, meaning that every increase in the General Allocation Fund by 1 rupiah can improve Regional Financial Performance. 3). The Special Allocation Fund has a positive and significant effect on Regional Financial Performance, meaning that any increase in the Special Allocation Fund by 1 rupiah can improve Regional Financial Performance. 4). Revenue Sharing Fund has a negative and significant effect on Regional Financial Performance, meaning that every increase in Revenue Sharing Fund of 1 rupiah can reduce Regional Financial Performance.

Top-Down or Bottom-Up? Choosing the Best Path of Management for Waqf-Takaful Death Compensation Product in Malaysia

In Malaysia, the integration of waqf and takaful for death compensation products aims to enhance financial protection within the Islamic finance framework. However, the effectiveness of this integration is influenced by the management approach adopted, either top-down or bottom-up. The top-down approach, driven by high-level government entities such as Bank Negara Malaysia (BNM) and the Ministry of Finance (MOF), promises streamlined processes and uniformity. Conversely, the bottom-up approach involves grassroots-level engagement through individual takaful agents, which emphasizes personalized interactions and alignment with local needs. Despite these theoretical benefits, there is a lack of empirical evidence assessing the practical impact of these approaches on key dimensions such as participant engagement, compliance with Islamic law, implementation speed, and institutional support. This study seeks to address this gap by applying a qualitative research design, including in-depth interviews with experts and comparative analysis methods, to evaluate the advantages and limitations of each approach. The goal is to provide actionable insights for policymakers and practitioners to optimize management strategies and improve the effectiveness and relevance of waqf-takaful death compensation products in Malaysia.

Navigating Nepal’s Economic Growth and Carbon Emissions: Insights into the Environmental Kuznets Curve (EKC)

This research aims to employ the Autoregressive Distributed Lag (ARDL) method within the insight into the Environmental Kuznets Curve (EKC) to verify whether EKC exists in the Nepalese economy. In this research, variables were used, such as carbon emissions per capita, GDP per capita, energy use per capita, trade volume, and urbanization from 1980 to 2021, and the ARDL method was used. The data has been taken in this research except trade volume from the World Bank and the Ministry of Finance, Nepal. The data sets are converted into the natural logarithmic form to minimize the problem of heteroskedasticity. The findings provide compelling evidence for the existence of the EKC in Nepal, that economic growth has an inverted U-shaped impact on carbon emissions. In the early stages of development, economic growth leads to rising carbon emissions, but in the later stages, economic growth becomes associated with declining emissions. Besides economic growth, per capita energy consumption and urbanization emerge as significant drivers of carbon emissions. However, the trade volume is not found to be the driving factor of carbon emissions. The findings of this study have significant policy implications for global climate change issues and Nepal’s transition from an underdeveloped to a developing nation. To achieve harmonious economic growth and emissions reduction, donor countries and agencies to partner with Nepal in its ambitious endeavors. This partnership can take shape through multifaceted support as fueling socio-economic progress that aligns with Nepal’s commitment to reduce carbon emissions, ensuring that development and sustainability walk together. This research recommends the government of Nepal electrify the transportation landscape by incentivizing the adoption of electric vehicles, paving the way for cleaner air and a healthier planet, empowering Nepal’s natural guardians by strengthening public and private forest programs, safeguarding invaluable ecosystems and biodiversity and curbing the tide of waste mismanagement through strict regulations and robust enforcement, transforming a potential threat into a source of innovation and resourcefulness. These measures, aligned with sustainable employment generation, can pave the way for a brighter and greener future for Nepal.

Discussion on the Application of Trust Assets in Estate Tax Payment According to the Latest Interpretation from the Ministry of Finance-Starting from the Ministry of Finance's Directive No. 11300533430 dated June 14, 2024

Discussion on the Application of Trust Assets in Estate Tax Payment According to the Latest Interpretation from the Ministry of Finance-Starting from the Ministry of Finance's Directive No. 11300533430 dated June 14, 2024

Integrating social policy dimensions into entrepreneurship education: a perspective from India

Social innovation and social enterprise are often supposed as methodological solutions to address multifaceted socio-economic problems, due to the sharing of ideas and their involvement of stakeholders from different sectors. This cooperative treatise (Ziegler in Innov Eur J Soc Sci Res 30:388–405, 2017) is striking to legislators across the political gamut. This research is therefore positioned within the broader literature on social innovation and its policy relevance; even though social innovation is not a novel thought, the application of social innovation as a policy idea and its part in relation to the restructuring of the prevailing welfare establishment has gained momentum in recent years. Hence, in their paper the authors will examine how social enterprise as a concept can act as a positive catalyst for influencing policy (i.e. public and social) in the developing world. To meet the overall aim of this paper, the authors employed a case study of India and applied a three-step approach, namely: (1) a literature review process that explored a variety of policy methods that can influence on the accomplishment and measurement of social enterprises; (2) a policy survey, which entailed desk-based searches of national and state-level policies, followed by stakeholder consultation queries to complement online results; and (3) qualitative interviews with stakeholders from government agencies and departments at national and state levels, including the Ministry of Finance, representatives of private industry, chambers of commerce, social investors, social enterprise networks, and advocacy leads. The research findings that are presented in this paper were funded by Delhi School of Public Policy and Governance, Institute of Eminence at the University of Delhi.

Impacto del gasto público en educación sobre el crecimiento económico en la región macro sur del Perú durante el periodo 2003-2021

The present research work aims to determine the impact of public spending on education on economic growth in the southern macro region of Peru during the period 2003 to 2021, covering the regions of Puno, Tacna, Arequipa, Moquegua, Apurímac, Cusco and Madre de Dios. The data used come from the statistical area of the Ministry of Economy and Finance, the National Institute of Statistics and Informatics and the Educational Quality Statistics of the Ministry of Education. The methodological approach adopted is hypothetical-deductive, non-experimental with a panel-type design; the estimation of the model was carried out using the Generalized Least Squares Feasible panel data technique which reveals significant quantitative relationships between the analysis variables. In general terms, the main findings indicate that a 1 % increase in public educational spending correlates with a 0.12 % increase in economic growth. Furthermore, when breaking down the impact of public spending by different levels of initial education - primary, secondary and higher - a 1 % increase generates an increase of 0.13 %, 0.14 % and 0.069 % respectively on economic growth. Furthermore, it is highlighted that investment in physical capital has a positive effect on economic growth. In conclusion, total public spending on education and spending by educational levels exhibit a positive and significant impact on economic growth, highlighting the strategic importance of government investment in education as a fundamental catalyst for economic growth.

ECONOMIC PARTNERSHIP UKRAINE–EU: RETROSPECT AND CHALLENGES OF FURTHER ENHANCED COOPERATION

Ukraine has been a priority partner of the EU since the signing of the Association Agreement in 2014. It was the significant financial and economic support of the EU as a whole and, in particular, of individual EU member states that became a key tool for avoiding catastrophic consequences in the financial and economic system of our country at the beginning of a full-scale war and for the current financing of the state budget deficit. Today, the European Union's support for Ukraine is extremely significant, although it is accompanied by a number of problematic issues that require an in-depth study of certain aspects of economic partnership in terms of finding ways and directions to improve the use of the potential of bilateral economic relations with the European Union as a whole and with individual EU member states.The methodological basis of the study is based on general scientific and special methods of economic theory, in particular, methods of theoretical generalization and comparative analysis for a comprehensive consideration of the research issue, and statistical methods of analysis. In the course of the study, the statistical materials of the European Union and the Ministry of Finance of Ukraine on foreign trade in goods were used.Modern scientific views on the content and prospects of Ukraine's economic partnership with the EU are studied. The key stages of the development of Ukraine's economic partnership with the European Union are summarized and schematized, with details of the areas of sectoral cooperation. The main indicators of trade relations and their role in the economies of the studied countries are analyzed. The key obstacles to further deepening of the economic partnership are substantiated, the elimination of which should be the primary goal of our country on the way to European integration.The obtained results can serve for further study of trade relations and their role in the economies of the studied countries.

Analysis of Factors Affecting Foreign Debt in Indonesia (Case Study 1990-2023)

This research aims to determine the factors that influence foreign debt by using data on foreign exchange reserves, exchange rates, and interest rates on Indonesia's foreign debt for the period 1990-2023. The data used in this research was obtained from the official websites of the Ministry of Finance of Indonesia, the Central Bureau of Statistics (BPS), and Bank Indonesia. This research uses multiple linear regression analysis. The results of this research show that foreign exchange reserves, exchange rates, and interest rates simultaneously influence Indonesia's foreign debt. Partially, foreign exchange reserves have a positive and significant effect on Indonesia's foreign debt, the exchange rate influences Indonesia's foreign debt, and interest rates have a positive effect on Indonesia's foreign debt.

Kewenangan Menteri Keuangan Memilih Ketua Dan Wail Ketua Pengadilan Pajak Berdasarkan Undang-Undang No.14. Tahun 2002

In the judicial system, the principle of independence must be upheld to ensure justice. However, there are indications that the autonomy of the tax court is being influenced. This is based on Article 8, paragraph (2) of Law Number 14 of 2002 on the Tax Court, which mandates the proposal of candidates for the positions of Chairman and Deputy Chairman of the Tax Court by the Minister of Finance. Ultimately, the Constitutional Court issued Decision No. 10/PUU-XVIII/2020 as a manifestation of judicial independence. The problem is how the authority of the Minister of Finance in selecting the Chairman and Deputy Chairman of the Tax Court before the Constitutional Court Decision No.10/PUU-XVII/2020, and what are the legal implications of this authority after the Constitutional Court Decision No.10/PUU-XVII/2020. This research is normative juridical in nature. The research is descriptive. Based on the research findings, the Ministry of Finance has the responsibility to guide the organization in both administration and finance of the tax court. Prior to the Constitutional Court's decision, the authority granted to the finance minister was not in line with the independence of the judiciary

Who determined the rules of the game in the Spanish financial reforms, 1970-1990?

ABSTRACT The aim of this paper is to analyze the Spanish regulatory reforms and to identify the key actors involved in the design and implementation of financial regulation and supervision. We examine the educational and professional profile of those at the helm of the main regulatory bodies (Ministers of Finance and the staff of the Bank of Spain) during the transition to democracy. The main hypothesis we wish to test is whether the reforms that took place in the 1970s and 1980s were carried out by people with a substantially different background to the protagonists of the reforms implemented during Franco’s regime. Our results show that the change in the regulators’ profile emerged in the late 1950s, with an increasingly influential role of the Bank of Spain’s Research Department, and that the reforms of the 1970s and 1980s were carried out by people with a solid academic and professional background, predominantly in economics.

Сучасний стан банківського кредитування суб’єктів малого підприємництва сфери оборони в україні

The article examines the current state of bank lending to small businesses in the defense sector in Ukraine. An analysis of the component expenditures of the state budget in 2021–2024 has been carried out; in particular, the share of defense expenditures has been determined. It has been found that defense production requires working capital for the purchase of components, covering the gap between the advance and the need for funds, relocation of enterprises, and provision of uninterrupted/alternative power sources. An analysis of current lending programs for small and medium-sized enterprises managed by Ukrainian banks in 2023 (JSC CB “PrivatBank”, JSC “Oschadbank”, JSC “Sense Bank”, JSC “Ukrgasbank”, JSC OTP BANK, JSC “Taskombank”, JSC “KredoBank”) has been carried out. The structure and volumes of loans issued to entrepreneurs within the framework of the Affordable Loans at 5-7-9% state program during the period of martial law have been studied, and their sectoral structure indicates that the funds have been being directed chiefly to agriculture – 52%, wholesale trade – 17% and food industry – 8%. A range of problems faced by small businesses in the defense sector in the process of bank lending has been outlined, in particular: lack of contracts with the Ministry of Defense of Ukraine, the need for weapon use approval, short-term nature, obtaining permission to export weapons, high interest rates, military risks, lack of collateral property, etc. The priority measures for expanding lending to the defense sector in Ukraine by the National Bank of Ukraine, the Ministry of Strategic Industries of Ukraine, and the Ministry of Finance of Ukraine have been systematized. It has been proposed that preferential state programs for bank lending be introduced to small businesses in the defense sector. Keywords: bank lending, small business, defense sector, support program, state program.

Will the new definition of a building structure as a subjectof real estate tax put an end to interpretation disputes?

Cascading terminological connections with the provisions of construction law have led to a pathological mechanismof amending the real estate tax without changing the tax act, but through changes to a large group of normativeacts that, prima facie, have nothing to do with taxes. As a result of the Constitutional Tribunal’s judgmentin case SK 14/21, the Ministry of Finance prepared an amendment to the Act on local taxes and fees, which is intendedto cut off connections with the provisions of construction law.

Debt repo of the Ministry of Finance of the Russian Federation

Debt repo of the Ministry of Finance of the Russian Federation

Making “strategic autonomy” rhyme with “fiscal austerity?” Unresolved conflicts of (geo)economic ideas in EU infrastructure policy

As a reaction to intensifying global competition, measures related to strategic autonomy are gaining traction on the EU level. Yet they coincide with a general return to fiscal consolidation. With current developments more inconclusive than previously suggested, this article asks how the central actors in EU economic policy, both public and private, position themselves in the autonomy-austerity conflict. It introduces a political-economic approach to the role of (geo)economic ideas and state-business relations in EU policy formation. The article focuses on infrastructure policy as a main field within which the conflict unfolds. A content analysis of official documents systematically maps the positions of relevant actors. While an influential group of southern finance ministries, Directorates-General, center-left parties, and trade unions is promoting strategic autonomy, a shrinking constellation around fiscal austerity contains relevant veto players. The deadlock results in the attempt to reconcile both ideas via “targeted flexibility”: consolidation via the expenditure side and a delegitimization of non-investment spending, coupled with a public de-risking of private investments. The approach is supported by European capital, yet highly inconsistent and runs up against pro-austerity forces. The findings have strong implications for the EU’s future geoeconomic strategy and its ability to compete globally.

Public Debt Management and Economic Growth in Sierra Leone (1973-2022)

Sierra Leone is a small developing country that continues to encounter enormous public debt challenges, principally as a result of inadequate Gross Domestic Product (GDP) and imprudent debt management. The country’s current debt-to-GDP ratio stands at 78.70%. The study investigates and analyses the impact of public debt on economic growth in Sierra Leone for the period 1973-2022. The study employs time series secondary data which were collected from various sources including the Central Bank of Sierra Leone and the Ministry of Finance. Key macroeconomic variables such as external debt stock-to-GDP ratio and domestic debt stock-to-GDP ratio were specified in the models employed in this study. The variables were tested for stationarity using unit root tests before applying the Autoregressive Distributed Lag (ARDL) approach in running the regression with a view to ascertaining both short run and long run effects of public debt on economic growth in Sierra Leone. Various diagnostic tests were carried out to appraise the robustness of the estimated growth equations using appropriate econometric criteria. The study empirically reveals a negative impact of public debt (both domestic and external) on economic growth in Sierra Leone both in the short run and in the long run. Furthermore, the study reveals that in order to ensure effective public debt management in Sierra Leone, there must be effective management of capital projects financed by public debt and to ensure stable exchange rates to reduce cost of financing debt. The study, therefore, proffers strategic recommendations in line with the findings, including a review of Sierra Leone’s debt management strategy to ensure that public debt is directed towards productive capital projects.

Reflection of interest and other expenses on loans and borrowings in accounting (financial) statements: recommendations of state and non-state regulators

The Ministry of Finance of the Russian Federation, as the state regulator of accounting, annually discloses new aspects of improving interest and other expenses related to borrowing in accounting (financial) reporting forms, including by issuing annual recommendations to auditors and audit organizations on verifying the reliability of annual reports. Despite the apparent simplicity of reflecting interest on borrowed funds — either for expenses of the current period or in the value of an investment asset, practitioners do not have fewer questions over time. The non-governmental accounting regulator “Accounting Methodological Center” also in its recommendations sets out its position on the reflection of interest and other expenses mainly in connection with newly emerging types of contractual relations for the presentation of borrowed funds. When conducting research, we used such methods as analysis and synthesis, comparison, grouping method, analogy method, logical approach, systematic approach. As a result of the conducted research, this article, in particular, presents generalized requirements for the formation of information on interest and other expenses related to borrowing, depending on the purpose of use and form of borrowing, as well as part of cash flows from current (operating), investment and financial activities of reporting organizations. In addition, in this paper, proposals are made to improve the accounting standard for reflecting the costs associated with borrowing. The results of this study will be of interest to a wide range of readers studying various problems of modern Russian and foreign accounting, and can also be used in the educational process of higher educational institutions.

PENGARUH RETURN ON ASSET, CURRENT RATIO, DEBT TO ASSET RATIO, DAN UKURAN PERUSAHAAN TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN SUB SEKTOR PERTANIAN YANG TERDAFTAR DI BEI TAHUN 2018-2022

The Ministry of Finance had the worst financial results across all industrial and agricultural sectors in 2019. The lack of corporate assets is a factor. The purpose of this study is to find empirical evidence regarding the effect of return on assets (ROA), current ratio (CR), debt to asset ratio (DAR), and company size on financial distress. The population used is the agricultural sub-sector companies listed on the IDX as many as 23 companies with 5 years of observation. This study used a purposive sampling method. The analytical techniques used in this study are descriptive statistics, logistic regression analysis, hypothesis testing, and determinant testing. The results showed that return on assets (ROA) had no effect on financial distress. Current ratio (CR), and firm size had a negative effect on financial distress. Debt to asset ratio (DAR) had a positive effect on financial distress. Simultaneously return on assets (ROA), current ratio (CR), debt to asset ratio (DAR), and company size affect financial distress in agricultural sub-sector companies listed on the Indonesia Stock Exchange.

PERAN PENGELUARAN PEMERINTAH TERHADAP PENINGKATAN PENDAPATAN PER KAPITA: STUDI KASUS 34 PROVINSI DI INDONESIA

This study aims to see the effect of government spending on income per capita of 34 provinces in Indonesia. This study uses panel data regression (pooled data) to determine the effect of government spyending, namely education function, health function, and social assistance, on the dependent variable income per capita. The data used secondary data of 34 provinces in Indonesia over the period 2016-2020 published by the Ministry of Finance and Central Statistics Agency. The result showed that government spending on education and public service functions with 5% error rate are statistically significant have sign in accordance with expectation, then H1 and H4 are accepted. While spending on social function has reversed sign and health function has no influence on income per capita of 34 provinces in Indonesia for 2015-2019 period

Audit Committee and Tobin’s Q as a Measure of Firm Performance Among Nepalese Commercial Banks

The study examines the impact of audit committee on the performance of Nepalese commercial banks. Tobin’s Q and return on assets are selected as the dependent variables. The selected independent variables are audit committee size, audit committee meeting, audit committee meeting allowance, gender diversity, board size and leverage. The study is based on secondary data of 16 commercial banks with 111 observations for the study period from 2015/16 to 2021/22. The data were collected from Banking and Financial Statistics published by Nepal Rastra Bank, reports published by Ministry of Finance and annual report of respective banks. The correlation coefficients and regression models are estimated to test the significance and importance of audit committee size, audit committee meeting, audit committee meeting allowance, gender diversity, board size and leverage on the performance of Nepalese commercial banks. The study showed that board size has a positive impact on Tobin’s Q and return on assets. It implies that increase in board size leads to increase in Tobin’s Q and return on assets in Nepalese commercial banks. Further, gender diversity in the audit committee has a negative impact on Tobin’s Q and return on assets. This indicates that higher the number of females in the audit committee, lower would be the Tobin’s Q and return on assets. Similarly, the study showed that audit committee size has a negative impact on Tobin’s Q which indicates that increase in audit committee size leads to decrease in Tobin’s Q. Whereas, audit committee size has a positive impact on return on assets. It means that increase in audit committee size leads to increase in return on assets. Moreover, leverage has a positive impact on Tobin’s Q. It shows that higher the level of leverage ratio in the banks, higher would be the Tobin’s Q. However, leverage has a negative impact on return on assets indicating higher the level of leverage ratio in the banks, lower would be the return on assets.

Financial Technology as a Basis for Financial Inclusion and its Impact on Profitability: A Case of Nepalese Commercial Banks

This study examines the impact of financial technology as a basis for financial inclusion on the profitability of Nepalese commercial banks. Return on assets and return on equity are selected as the dependent variables. Similarly, number of ATMs, number of branches, debt to assets ratio, credit to assets ratio, credit to deposit ratio and deprived sector lending are selected as the independent variables. This study is based on secondary data of 16 commercial banks with 112 observations for the study period from 2015/16 to 2021/22. The data were collected from Banking and Financial statistics published by Nepal Rastra Bank, reports published by the Ministry of Finance, and annual reports of respective banks. The correlation coefficients and regression models are estimated to test the impact of financial technology on the profitability of Nepalese commercial banks. The results showed that number of ATMs of a bank has a positive effect on return on assets and return on equity. This implies that increase in the number of ATMs of the bank leads to increase in return on assets and return on equity. Likewise, number of branches of a bank has a positive effect on return on assets and return on equity. This implies that increase in the number of branches of the bank leads to increase in the return on assets and return on equity. Similarly, debt to assets ratio has a positive effect on return on assets and return on equity. This indicates that higher the debt to assets ratio, higher would be the return on assets and return on equity. Likewise, credit to deposit ratio has a negative effect on return on assets and return on equity. This indicates that higher the credit to deposit ratio, lower would be the return on assets and return on equity. Similarly, credit to asset ratio has a negative effect on return on assets and return on equity. This indicates that higher the credit to asset ratio, lower would be the return on assets and return on equity. Furthermore, deprived sector lending has a negative effect on return on assets and return on equity. It implies that higher the deprived sector lending of a bank, lower would be the return on assets and return on equity.