Modern Budget Research Articles

Normative Content and Practice of Application of the Principle of General (Aggregate) Cost Coverage in the Budget System of the Russian Federation

The paper presents a comprehensive study of the importance of the principle of general (aggregate) cost coverage for the formation of the Russian budget system, formation of budget and tax legislation, implementation of modern budget policy and development of law enforcement practice. Special attention is paid not only to the doctrinal and theoretical understanding of this principle, but also to the systematization and research of various introduced practices of linking budget expenditures with specific sources of revenues (primarily mandatory public payments) or financing budget deficits. The paper presents various legislative proposals for the introduction of exceptions to the prohibition of linking budget expenditures and certain budget revenues, which were rejected due to their contradiction to the principle of total (aggregate) cost coverage. The study allowed the author to make proposals based on the constitutional principle of mutual trust between the State and society. By introducing a mandatory public payment, the payment of which is conditioned by the purpose of carrying out special expenses of public authorities, the state must create a guaranteed target mechanism for financing such expenses using special mechanisms for accumulating budget revenues.

Overlooked shelf sediment reductive sinks of dissolved rhenium and uranium in the modern ocean

Rhenium (Re) and uranium (U) are essential proxies in reconstructing past oceanic oxygenation evolution. However, their removal in continental shelf sediments, hotspots of early diagenesis, were previously treated as quantitatively unimportant sinks in the ocean. Here we examine the sedimentary reductive removal of Re and U and their coupling with organic carbon decomposition, utilizing the 224Ra/228Th disequilibria within the East China Sea shelf. We identified positive correlations between their removal fluxes and the rates of sediment oxygen consumption or organic carbon decomposition. These correlations enable an evaluation of global shelf reductive sinks that are comparable to (for Re) or higher than (~4-fold for U) previously established suboxic/anoxic sinks. These findings suggest potential imbalances in the modern budgets of Re and U, or perhaps a substantial underestimation of their sources. Our study thus highlights shelf sedimentary reductive removal as critical yet overlooked sinks for Re and U in the modern ocean.

Exploring the Evolution of Budgeting Practices from Traditional to Technology

Purpose: This study explores the evolution of budgeting practices from traditional to contemporary technology-driven approaches. It examines how technological advancements and organizational changes have transformed budgeting processes, highlighting the shift towards more flexible and data-driven methodologies. Research Design and Methodology: This study embarks on a journey of comprehensive literature review using a qualitative research approach. The methodology involves systematic searches of academic databases, thematic analysis and synthesis of findings from relevant studies. The research focuses on the design, implementation, and impact of both traditional and modern budgeting practices, as well as the challenges associated with technological adoption. Findings and Discussion: The findings reveal that traditional budgeting methods, characterized by hierarchical and fixed targets, must be revised in dynamic business environments. Technological innovations, such as ERP systems and cloud-based platforms, significantly improve efficiency, accuracy, and decision-making. Alternative frameworks like the Balanced Scorecard and Beyond Budgeting promote strategic alignment and organizational agility. However, challenges such as data security, integration complexities, and resistance to change remain significant barriers to full adoption. Implications: This study's findings have direct and practical implications for financial managers and policymakers seeking to optimize budgeting processes. Investing in robust data infrastructure and fostering a culture of continuous improvement is essential for leveraging the benefits of technological innovations. Future research should focus on the long-term impacts of these practices and explore strategies to overcome implementation challenges. This will help organizations achieve greater agility, responsiveness, and competitiveness in an increasingly digitalized business landscape.

Deficit as Policy: Widening the Scope of Debt-Financed Spending in the United States, 1792-Present Chapter 3 A Fiscal Rules Approach to Explain the Modern Budget Era Problem

Deficit as Policy: Widening the Scope of Debt-Financed Spending in the United States, 1792-Present Chapter 3 A Fiscal Rules Approach to Explain the Modern Budget Era Problem

Task-Based Budgeting in Environmental Projects Planning: A Case Study of a Manufacturing Company in Poland

In this paper most important differences between performance budgeting and traditional budgeting were presented. The aim of this paper is to focus only on selected differences. The conducted case-study in Poland reveals that activity-based budgeting is an effective method of financial management. Traditional budgeting is implemented according to older concepts. These rules are not compatible with the demands of modern budgeting. Unfortunately, the traditional budgeting method is widely used in public sector in Poland. It is also quite often used in commercial enterprises. The traditional method of budgeting is easier and quicker to implement. Thus, it is popular. On the other hand, it does not allow to achieve positive effects of activity-based budgeting.

Концептуалізація бюджетування в парадигмі інституціоналізму

Introduction. The development of a theoretical and methodological concept of budgeting in public finance is necessary and important for Ukraine, which does not have its own long tradition of the budgeting technologies developing on the democratic principles. Considering the fact that budgeting takes place in an institutional environment, it is reasonable to substantiate the conceptual foundations of budgeting in the paradigm of institutionalism. Problem Statement. A systematized presentation of the conceptual foundations of budgeting as a macro-level financial and management technology with the specification of elements, conditions and principles remains an unresolved task. The purpose of the article is to substantiate the conceptual foundations of modern budgeting as a financial and management technology aimed at ensuring public welfare, to identify the components of budgeting, to expand and deepen their characteristics compared to the previous developments, to substantiate the principles of budgeting. Methods. The authors base their research on the methodology of institutionalism. They use evolutionistic approach to argue for the institutional nature of budgeting; systemic approach and theoretical generalizations - for conceptualizing budgeting; graphic interpretation - for a visualization of the components of budgeting as a financial and management technology. Results. The authors reveal the evolutionary changes in the development of budgeting technologies, give the definition of budgeting in public finance, identify the elements of budgeting, determine the sequence of budgeting stages as a process aimed at ensuring sustainable development and growth of the welfare of society, and substantiate the principles of budgeting. Conclusions. Budgeting in public finance is a management technology, the content of which is revealed in two aspects: 1) as a set of techniques, tools and methods; 2) as a process consisting of successive stages: from setting the goals and tasks of socio-economic development to evaluating effectiveness and efficiency. With the evolution of the state, approaches changed and different budgeting technologies were formed. The main task of financial and management engineering is the correct choice and combination of various budgeting technologies or their components to achieve the desirable result.

The Evolution of the Budget Process of the Russian Federation in the context of Transformation of Budget Legislation

The paper is devoted to the study of the budget process — its legal and doctrinal definitions, the stages of the budget process and the main changes that have occurred in the legal regulation of the budget process. The paper compares the positions of researchers — representatives of financial and legal science on these issues. According to the results of the study, it is concluded that the budget process is a multifaceted and multidimensional category of financial law in the process of constant transformation and development. It is pointed out that there is currently no legal definition of the concept of «stage of the budget process»; this gap should be eliminated by supplementing Article 6 of the Budgetary Code of the Russian Federation. In addition, it can be concluded that most authors, repeating the provisions of the budget legislation, distinguish four stages of the budget process. The concept of a four-stage budget process is the most correct and justified, since it arose as a result of a long evolution of the budget process. At the same time, each stage reflects a separate stage of the budget process, characterized by its own procedures, deadlines, participants, their powers and other essential aspects. At the same time, despite the apparent static nature, manifested in the immutability of the number and sequence of stages of the budget process, its content is constantly changing and being supplemented. The modern budget process strives for a wider application of a program-oriented approach, coupled with the simultaneous introduction of innovative digital technologies. It can be expected that digitalization will continue to have an impact on the content of the budget process in the foreseeable future.

Deficit as Policy: Widening the Scope of Debt-Financed Spending in the United States, 1792-Present Chapter 1 What is the Modern Budget Era Problem?

Deficit as Policy: Widening the Scope of Debt-Financed Spending in the United States, 1792-Present Chapter 1 What is the Modern Budget Era Problem?

THE DICHOTOMY OF IMPROVING STATE BUDGET EXPENDITURE: FROM ENSURING OPPOSITION TO RUSSIAN AGGRESSION AGAINST UKRAINE TO BUILDING A MODERN STATE INTEGRATED INTO WESTERN CIVILIZATION

Introduction. The period of resistance to the aggression of the Russian Federation against Ukraine implies the need to solve fundamentally new tasks facing the state and the accumulation of a large layer of previously accumulated problems. This determines the key need to improve state budget expenditures. The purpose of the article is to develop main vectors for improving the management of state budget expenditures, aimed at ensuring the ability to resist the aggression of the Russian Federation against Ukraine and the implementation of measures to build a modern state integrated into the European and Euro-Atlantic space. Results. The main vectors of improving state budget expenditures should cover a complex of directions: strengthening the organizational capacity of entities managing budget expenditures, improving priorities for the use of budget funds, establishing effective communications with society, modernizing the procedures for forming and implementing budget expenditures (budgeting technologies), and developing institutional support for the use budget funds. A set of measures has been defined for the period of resistance to the aggression of the Russian Federation against Ukraine and the period of postwar development of the country with the aim of strengthening the organizational capacity of entities managing budget expenditures, which includes the development of human capital, the introduction of the latest digital technologies, the introduction of artificial intelligence and the strengthening of partnership ties. For the specified period, directions for strengthening the priorities of budget expenditures are outlined, which involve changes in each of the functions of budget expenditures in the economic system (placement, redistribution and stimulation) and in public administration (programming and control). The introduction and application of modern budgeting technologies in Ukraine is expedient in view of the possibility of applying relevant NATO documents during the period of resistance to Russian aggression on optimizing the allocation of resources to maximize the result in the defense sphere and taking into account the potential of European and Euro-Atlantic integration in the post-war period. Identified directions in improving the formation and implementation of budget expenditures, as well as the changing external environment, necessitate the development of institutional support for the budget process. Conclusions. The well-founded composition and content of measures to improve expenditures in the conditions of resistance to the aggression of the Russian Federation against Ukraine is aimed not only at solving the tasks that are relevant for this period, but also should create a favorable environment for a flexible transition for the further modernization of relations in the field of budget expenditures in the period of the country's post-war development and successful European and Euro-Atlantic integration.

Modern budget policy: features and criteria for assessing quality

The development of the principles of an appropriate budget policy (or a budget policy of adequate quality) is the central topic of research by Russian and foreign scientists, experts from the International Monetary Fund and the World Bank as a response to the need of the world community to search for universal tools for ensuring economic growth with the unconditional fulfillment of current budget obligations, which in including the ability to mitigate the negative effects of fluctuations in economic cycles. Revision of the significance and role of the budget as one of the main instruments for the implementation of financial policy is especially relevant at the present time in connection with the global revision of the strategic priorities for the development of the state in the new socio-economic realities.

Consolidated budgets of the regions of the Ural Federal district: development trends

The article is devoted to assessing trends in income and expenditure of the consolidated budgets of the constituent entities of the Russian Federation that are part of the Ural Federal District, which were caused by the global pandemic of coronavirus infection and changes in the macroeconomic situation in the country and the world. The relevance of the study is due to the need to determine the impact of internal and external shocks on the dynamics of budget indicators and, as a result, to assess the budget balance of the execution of the consolidated budgets of the regions. A feature of the modern budget policy, implemented in special conditions, is the combination of financing new tasks, with the continuation of the implementation of the previously defined national development goals of the country. The article presents a theoretical review of scientific research in the area under study. Based on data from open official sources, using general scientific methods, the trends that have developed in the consolidated budgets of the regions of the Ural Federal District in the pandemic and post-pandemic period are shown. The authors analyzed the structure and dynamics of the revenue and expenditure side of the consolidated budgets of the regions that are part of the Ural Federal District for 2019–2021, and also identified trends in the first half of 2022. According to the growth of the revenue side of the consolidated budget among the regions that are part of the Ural Federal District for 2019–2021. Chelyabinsk and Sverdlovsk regions are in the lead. Assessing the situation with the income of the consolidated budgets of the regions of the federal district for the first half of 2022, it can be noted that more than 2/3 of the total income growth was made by the oil and gas territories of the Ural Federal District — the Khanty-Mansiysk and Yamalo-Nenets Autonomous Okrugs and the Tyumen Region. The structure of expenses of the consolidated budgets of the Ural Federal District for 2019–2021 has practically not changed. In the first half of 2022, the Kurgan region showed the worst performance both in terms of income and expenses. The consolidated budget posted a record surplus in the first half of 2022 thanks to a sharp decrease in spending. As a result, the analysis of revenues and expenditures of the consolidated budgets of the regions that are part of the Ural Federal District for the analyzed period showed that differentiation in terms of the budgetary provision of the regions is increasing.

Використання кліматичного маркування як інструменту зеленого бюджетування в Україні: рекомендації та перспективи

Introduction. Achieving climate neutrality by countries in the face of increasing uncertainty in policymaking due to the accumulation of adverse factors such as war, pandemic and natural disasters requires the development of green budgeting techniques as budgeting by priorities integration in public ?nancial management. A detailed study of ?nancial opportunities in ?nancial relations expands the range of public ?nance operations with “green” characteristics. Problem Statement. The development of green budgeting from a partly impact to a systemic impact on the result embedded in public policy has been studied. A promising tool for green budgeting in Ukraine is climate marking of budget indicators both at the level of main manager of budget funds and at the level of budget programs. Purpose.To reveal the essential characteristics of the climate marking tool and systematize the developments on its use in green budgeting as a necessary condition for modern e?ective budgeting in public ?nance. Methods. The study used methods of theoretical generalization based on the analysis of budgeting practices components based on the OECD, the UN, the World Bank materials, foreign authorities documents and regulatory documents of Ukraine. Results. The use of the green budget tagging tool in modern green budgeting for the budgetary funds use and the green policy goals achievement is considered. The necessity of a systematic approach is substantiated and a strategic framework for the use of green budget tagging in budgeting is proposed. A methodic for separating climatic impacts during green budget tagging into negative, ambiguous and positive is proposed. The objects for monitoring and assessment after green budget tagging use in the country’s budget is grouped. Conclusions. The use of green budget tagging at all levels of the main manager of budget funds network will allow monitoring of climate impact in the results of budgeting for its further assessment.

The Effect of the Covıd-19 Pandemic on the Budgeting Process in Companies: Implementation in a Manufacturing Company That Actı̇vate in ICIa 500

Purpose: This work was conducted in one of the 500 largest companies in Turkey to study the impact of the Covıd-19 pandemic on the budgeting process in companies. Methodology: The interview technique was preferred as the research method. Data were collected through one-on-one interviews with the budget manager. Findings: As a result of the study, it was found that the company acted in accordance with general budgeting principles, invested in technologies to professionalize the budgeting process, and benefited from modern budgeting methods. The Covıd-19 pandemic process required constant revisions and flexibility in the budgeting process. Originality/Value: The study contributes to the literature by examining the impact of Covid-19 on the budgeting process.

Changes in China’s fiscal system in the late Qing

ABSTRACT In the late Qing, due to frequent large-scale wars, the Board of Revenue (hubu) and provincial treasuries were often in a state of great difficulties, struggling to support the wartime needs. After the central government was forced to delegate the authority of fundraising, tax collection and expenditure to the provinces, the provincial governments had to rely on themselves to relieve financial difficulties. Hence, within the centralized and unified traditional fiscal system, the provincial finance was getting stronger, forming the new pattern that the central and provincial governments had equal control of finance. The allocation system of the national financial resources changed from the direct appropriation of funds from the Board of Revenue to the appropriation according to needs of provinces based on consultations with the provinces. In the later period of the Guangxu reign, the central government actively introduced the western fiscal budget system in order to solve the financial problems and prevent chaos. In revenue and expenditure, the Qing government adhered to the traditional principle of “adjusting expenditure according to the income” (liang ru wei chu), while in the wartime or when the demand of funds substantially increased due to the enforcement of the New Policy Reform, it became trapped in the predicament between the traditional principle and the new principle of “adjusting income according to the expenditure” (liang chu wei ru). When the modern budget system was implemented in the late Qing, the central government resolutely put into effect the above two principles into practical budgetary planning, trying to balance between the steady and the positive policies for expanding financial resources. However, the fiscal reform failed to save the Qing government from ultimate falling after the 1911 Revolution started.

The establishment of modern enterprise budget based on ERP control system: the evidence from Dongfeng Yueda Kia

Corporate Finance budget as an important part of the work of that enterprise normal operations guarantee. In every enterprise, the budget should be attached great importance to the work. This article is an in-depth understanding of corporate control of the budget process, the meta-analysis presented in the information economy, it should make full use of the information network technology advantages, and actively use our enterprise budget control, real-time control of the budget increase, effectiveness, timeliness improve the operations of enterprises, improve the operating efficiency of funds, and promote sustained and healthy development of enterprises.

State budget of Ukraine-2023: features of the regulation of financial and economic processes in the conditions of full-scale war

The article is devoted to the study of theoretical, methodological and applied aspects of the formation of the country's state budget as a tool for the implementation of social and economic policy, outlines its role in the life of society and individuals. In addition, a detailed analysis is devoted to the structural components of the budget: sources of the revenue part of the budget, which includes tax and non-tax revenues, official transfers, trust funds, income from capital operations and other revenues; peculiarities of the distribution of the expenditure part through researching the main trends of directing state funds. The correlation between the role, functions and tasks of the state budget of Ukraine regarding the practical implementation of the best experience of economically stable countries of the world regarding the use of modern budgeting technologies is comprehensively characterized. The specifics of budget policy implementation in the crisis period are considered, taking into account the specifics of the current legislation of Ukraine. As a result, the place of the state budget in the financial system of Ukraine in the conditions of a full-scale war in terms of ensuring the priority sectors of the economy was revealed. On the basis of the proposed main financial plan of the country for 2023, through the application of economic and statistical methods, deduction, synthesis and analysis, the analysis and systematization of key macro- and microeconomic indicators was carried out in order to clarify the modern laws, trends and processes of the country's socio-economic development in the conditions of war state. The particular attention is paid to financing defense and social spheres in 2023, the features of social security of the population and the state debt. The article highlights in detail the existing problems and potential threats in the budget system of Ukraine in 2023 and suggests ways to solve them in accordance with the conditions of a country at war.

Interbudgetary credit as a legal form of redistribution of financial resources in the mechanism of budgetary regulation

This article is devoted to a number of issues related to the importance of the method of budgetary lending in the legal mechanism of budgetary regulation. It has been established that in modern conditions, budgetary credit acquires special significance for the federal state, which is the Russian Federation. In 2021, the sub-federal budgets of public law entities are executed in the most difficult economic conditions of the need to overcome the consequences of the spread of coronavirus infection in Russia and the global financial crisis. Given the fact that the ongoing implementation of national projects requires significant expenditures, including at the level of regional budgets, the constituent entities of the Russian Federation are increasingly faced with a significant budget deficit and are increasing public debt to finance it. In the course of the study, various features of budget loans were highlighted, various aspects were studied and the definition of interbudgetary credit was formulated, the key powers of the Federal Treasury in the field of interbudgetary lending were described, the importance of this method for maintaining the stability of the federal state and its subjects was analyzed. It is determined that the Federal Treasury, using the method of interbudgetary lending, ensures the uninterrupted execution of the budgets of the budgetary system of the Russian Federation and state extra-budgetary funds. It is concluded that in modern society budget loans between public law entities play a key role in the process of redistribution of funds in the budget system of the Russian Federation and are one of the backbone forms in the legal mechanism of budget regulation.

ASSESSMENT OF THE IMPACT OF BUDGET DECENTRALIZATION ON SUSTAINABLE DEVELOPMENT OF TERRITORIAL COMMUNITIES IN UKRAINE

Peculiarities of territorial community (hromada) development management are revealed and theoretical approaches to budget decentralization in Ukraine are substantiated. Based on the analysis of the composition and structure of local budgets, as well as the calculation of financial independence of territorial communities (hromadas), it is proved that the current budget system of Ukraine is characterized by a high degree of budgetary resources centralization, which does not provide real independence. Building an efficient model of fiscal decentralization consists in determining the tax potential of a separate administrative-territorial unit (territorial community). For further success of decentralization, it is necessary to determine the optimal amount of government functions that are appropriate and cost-effective to delegate to the appropriate local level on a permanent basis, thereby converting them into the local government's own functions.Purpose of study. The aim of the study is to assess the impact of budget decentralization on the sustainable development of territorial communities (hromadas), to determine its relationship with changes in the administrative-territorial structure of Ukraine and to strengthen the financial independence of newly established institutions (amalgamated hromadas).Methodology. In the course of the research the following methods were used: analogy and comparative analysis to identify the features of the implementation of fiscal decentralization in different countries of the world and in Ukraine; settlement and constructive – used in determining the indicators of territorial communities' financial independence in the process of budget decentralization implementation in Ukraine; abstract-logical to reveal the main threats to the financial security of territorial communities and justify proposals and recommendations to ensure their sustainable development.Results of the study. The study showed the presence of certain features in the implementation of budget decentralization reform in Ukraine in modern conditions due to a number of macroeconomic and institutional factors with a long-term and globalization nature of manifestation. They led to the emergence of clearly defined trends and patterns of change in the choice of regional development financial instruments, which will further improve the process of development management of Ukrainian administrative-territorial units in terms of decentralization to achieve the priorities of socio-economic development.Peculiarities of territorial community development management are revealed and theoretical approaches to budget decentralization in Ukraine are substantiated. Based on the analysis of the local budget revenues composition and structure, as well as the calculation of the territorial community financial independence indicators, it was proved that the modern budget system of Ukraine is characterized by a high degree of centralization of budgetary resources.It has been substantiated that the difficulties arising in the financing of state budget expenditures under both unitary and federal systems are largely due to the imperfection or inconsistency of certain provisions of the Basic Law (the Constitution) with the current state of interstate relations and the domestic political situation.Conclusion. It is emphasized that the main problem to be solved to build an effective and efficient model of fiscal decentralization is to determine the tax potential of a particular administrative-territorial unit (territorial community) and the optimal volume of state functions that are expedient and cost-effective to delegate to the local level as own functions of local self-government.

Changes in Turkish Budget System: Transition to Performance-Based Program Budgeting

Due to its economic functions, including that of a planning strategy for the future, state budget as a management tool requires the transition from a traditional structure to a modern one. In the modern budget systems principally implemented today, effectiveness and the efficiency of the results are taken into consideration rather than the cost of the services provided by the state. Although there are various types of modern budget systems, program budget and performance-based budget systems have been implemented in Turkey. Modern budget systems were put into practice in order to change the input-oriented structure of the classical budget. However, structural problems and the inability to measure the outputs at the desired level have resulted in the budget systems going back to the traditional structure. The aim of this study is to evaluate the changes in the methods applied, legal and institutional structure of the Turkish budget system and the problems that have emerged, starting with the General Accounting Law No. 1050 and until today.

The prospects of development of the state and private partnership under conditions of the healthcare reform

The prospects of development of the state and private partnership under conditions of the healthcare reform