Budgetary Principles Research Articles

Emergency budgeting for resilience during the war. The case of Ukraine

IMPACT The article provides insights into the dynamics of emergency budgeting and budget resilience in nations facing human-made disasters, taking the Russian full-scale invasion of Ukraine as a case study. These insights are crucial for policy-makers in both Ukraine and other countries facing socio-economic disruption due to armed conflicts. The research emphasizes the importance of adapting budgeting practices to respond to the challenges and uncertainties of the war, the critical role of international aid in sustaining national budgeting resilience and the need for transparency and accountability in the budgeting processes. As global conflicts and geopolitical tensions continue to rise, the principles of resilience and emergency budgeting discussed in this article have broader implications for the international community—particularly for nations vulnerable to conflict, economic crisis or other human-made disasters.

Developing potential budget reform for Latvia: Shifting from conventional to contemporary budgeting

Modern changes in politics and economics around the world are occurring so rapidly and frequently that outdated budget planning principles no longer have time to respond to these challenges. That is why the development of ideas for modernizing the principles of budgeting in the Republic of Latvia is very relevant. The purpose of this paper is to develop recommendations for changes in approaches to state budgeting. In the course of the study, the methods of statistical analysis, synthesis, and structuring were used. Using the methods of retrospective and comparative analysis, the changes in the budget legislation of Latvia that have taken place over the three decades of restored independence were also studied. The study analysed the existing procedure for creating and approving the budget and confirmed the sufficient balance of different branches of government in this process. In addition, the study identified weaknesses in the current system of approving and executing the expenditure side of the budget, problems in the amendment procedure and difficulties in processing the necessary allocations during the year. Based on the current experience of other European countries, ideas were proposed to correct the identified problems and improve the budget system – both at the stage of formation and at the stage of control over the actual distribution of expenditures. In particular, potential reforms included the creation of documents based on medium-term timeframes, automation of the system of reallocation of funds during the financial year, and steps to improve communication between the government and civil society. The practical significance of the study lies in the creation of a potential reform programme that may be of interest to the Cabinet of Ministers of Latvia and the Budget Committee of the Saeima

Tarhuncu Ahmet Pasha Budget in Classical and Modern Meaning

The expenditures of the state throughout history have been documented. Today, a budget is a document prepared, approved and implemented according to certain rules for the future. Various budgeting principles must be followed in the modern state budget. Interestingly, it is known that the budget prepared during the reign of Tarhuncu Ahmet Pasha of the Ottoman Empire in the 16th century is similar to today's state budget. The purpose of this study is to determine whether the budget led by Tarhuncu Ahmet Pasha is a state budget in today's modern sense or what type of budget it is. Information and documents obtained from the Ottoman Archives were used in the study. It has been determined that the budget prepared by Tarhuncu Ahmet Pasha is compatible with the majority of today's budget principles and rules, although not all of them.

Performance audit as an advanced form of public administration

Since the introduction of the principles of results-based budgeting into the global practice of public administration at the beginning of the twentieth century, the role of such an indicator as the effectiveness of the functioning of public institutions has increased every year, which led to the emergence and development of such a tool of public audit bodies as a performance audit. Having originated in the middle of the twentieth century in Western countries, performance audit has over time become one of the key tools of independent public audit bodies aimed not at finding violations, but at eliminating both fundamental and less global problems in the activities of executive authorities. At the same time, the principles on which the performance audit is based can be applied in their activities not only by state audit bodies, but also by representatives of the executive authorities of various states, such as financial control bodies, executive authorities and state organizations. The basis for the proper functioning of state institutions in the rapidly changing world of our time are public administration and control systems based on the principles of permanent search for shortcomings and improvement of processes at the state and municipal levels.

Public Sector Budgeting in Poland: Challenges and Opportunities in a Changing Economy

This paper examines the challenges faced by Poland's public sector enterprises and organizations as they manage budgets during the country's transition to a market economy. It investigates how traditional budgetary principles interact with new economic development concepts, drawing on development economics to understand the unique context of Poland's systemic shift. The study analyzes empirical data and public finance trends, arguing that maximizing tax revenue through higher burdens is counterproductive. Specifically, the paper explores how escalating tax burdens on public sector units can stifle economic growth and contribute to the expansion of the shadow economy. Instead, the paper proposes a focus on rational and efficient resource allocation within the public sector as a means to bolster budgetary revenues without hindering overall economic development. This study offers valuable insights for policymakers and researchers interested in understanding the complexities of public finance management within transitional economies.

Structuring the budget process of the most powerful countries in the world: the United States, China, and Japan

In the conditions of overcoming the domestic crisis budget phenomena, the implementation of the chosen course of European integration and Euro-Atlantic integration, further development of the budget process based on the implementation of the best examples of the budget sphere of developed countries in the domestic budget sphere is an urgent need for the financial present of our country. The article structures the budget process of the United States, China and Japan through a detailed review of their budget systems and budget processes, as the most developed in terms of both GDP and the state budget of the country of the world. The authors identified and analyzed the budget legislation of the above-mentioned countries, identified the components of the budget systems of the latter, identified the powers of all branches of government regarding the budget process in the USA, China and Japan, described the step-by-step components of the budget process in these countries, worked out budget principles as part of the principles of budgeting and principles of the budget process in the USA, China and Japan, formed models of the budget process in the above-mentioned countries, including: budget principles, principles of the budget process, stages of the budget process with procedural powers. The structuring of the budget process of the USA, China and Japan was carried out, as well as the following comparative analysis allowed us to conclude about the strengths of both the budget process of the PRC (which is manifested in its clear regulation, systematization and legally fixed surplus of the state budget), and the USA and Japan (which is manifested in the repeated consistency of budget indicators at all levels and the level of their discussion and the openness of the latter during the first two stages of budget processes in these countries). It is concluded that these positions will be introduced into domestic practice, which will contribute to more effective implementation of all stages of the budget process, which, in turn, will help to stabilize the public finance system of Ukraine.

Comparing COVID–19 Budgeting Responses: New Budgeting Principles that Resulted from the Pandemic

This study provides a comparative analysis of the budget limits of the Commonwealth of Independent States members, focusing on fiscal responses to the COVID crisis and options for improving the structure. The methodology comprised a statistical approach based on assessments of macroeconomic indicators for 2020–2021, as well as world rankings and several measurement systems. The following new budgeting principles were formulated as a result of the comparative analysis of public administration. The proposed principles focus on monitoring, assessing, and forecast data of long‑term sustainability management and other fiscal risks. The proposed budgeting principles could provide a country with the new opportunities needed to expand its potential during further economic advancement in global politics. The central result of this work is a renewed approach to budget management using data on the actual economic situation and adaptability to changes. The proposed budget management scheme lays the foundation for the future development of a country’s potential and aligns with the priority goals of the CIS member states in terms of democracy. The value of this research lies in presenting and summarizing the analysis of the budget management system and the detailing of budgetary policies to identify and reflect the political priorities of countries. This helps formulate recommendations and suggestions for improving the budgetary process, achieving a balanced distribution of resources, and attaining strategic development goals. The practical application of the findings will allow budget policy specialists, economists, and statisticians to become familiar with the changes in the institutional landscape amid COVID–19 and assess the situation in their region through the prism of administrative sovereignties.

Public land, value capture, and the rise of speculative urban governance in post-crisis London

The capture of value from public land has emerged as a central concern in recent scholarship on urban financialization. Drawing on the case of local authority housing companies in London, this paper explores why and how the local state is engaging in an increasingly speculative mode of land development, and with what effects. By conceptualizing state-led value capture as a political technology of risk management that operates across scales, I develop two key arguments. First, I argue that struggles over the allocation of the risks and costs of public debt have shaped local authorities’ speculative engagement with land. Unlike the case of US municipalities that are structurally reliant on private bond markets, I show how local authorities’ growth politics have been underwritten by the central state and accelerated by budgetary austerity. Second, I argue that this translocation of risk at the scale of the local gives rise to a form of state power organized around the allocation, production, and constant monitoring of financial and political risks. The politics of risk that underpin municipal experiments in state-led value capture combine an embrace of uncertainty and value expansion, with the principles of austerity budgeting, downscaling, and retrenchment. Ultimately, the effects of this form of state intervention are a heightening of uneven development, an exacerbation of local fiscal crisis, and a weakening of democratic governance.

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 theoretical and practical foundations for the implementation the "green" budgeting principles

The subject of the study is the conceptual foundations of the implementation of the principles of "green" budgeting. The purpose of the article is to study the peculiarities of the formation of "green" (ecological) budgeting in the developed countries of the world and countries with a transformational economy, to provide suggestions on the possibilities, advantages and risks of introducing the principles of "green" budgeting in the budget process in Ukraine. Method or methodology of research. In the article, a set of methods of scientific knowledge was used to solve the tasks, which made it possible to realize the conceptual unity of scientific research. System method, method of generalization, methods of analysis and synthesis, comparison, scientific abstraction are applied. Results of the article.. The article discusses approaches to defining the concept of "green" budgeting, environmental labeling of budget expenditures. The factors that determine the success of achieving the Sustainable Development Goals and the role of "green" budgeting in this process are systematized. The need to revise state policy measures in the sphere of solving issues of social, economic and environmental direction, increasing the level of people's well-being and reducing social inequality in the form of leveling environmental risks and ensuring conditions for the harmonious development of ecosystems as a component of achieving the Sustainable Development Goals by 2023 has been identified. The peculiarities of the introduction of "green" budgeting in the countries of the European Union and the member countries of the Organization for Economic Cooperation and Development were studied, and the level of "greening" of the budget system and budget policy was determined. Field of application of results. The results of the study can be used in the process of reforming the public finance management system in terms of improving the budget process through the gradual introduction of environmental labeling of budget expenditures. Conclusions. Green budgeting can have a broader scope related to a range of environmental goals and starts by labeling budget items related to a narrower range of environmental goals, then these methods provide a useful basis for creating markers related to other environmental goals . The primary tasks of the introduction of environmental labeling are to understand the purpose of such budgetary policy instruments, in particular, to understand the area of ​​problems that the government is trying to solve with such an innovation, to assess whether green labeling is a valid solution to environmental problems, as well as the stage of the budget process at which the introduction of green labeling should begin.

ASPECTS OF STRATEGIC POLICY OF FINANCIAL RECONSTRUCTION OF THE ENTERPRISE

The research emphasizes the relevance of the problem of strategic management in the field of financial rehabilitation of the enterprise. The purpose of the study is the further development of the theoretical-methodical and methodical-applied principles of strategizing the policy of financial rehabilitation of enterprises. It is shown that the dynamism of the external and internal environment of enterprises, the emergence of new systemic and critically complicated threats, such as war and its negative consequences, determine the need for further development of methodological and applied foundations of strategizing the policy of financial rehabilitation of business entities. The principles of the formation of information and analytical support of the management subsystem of the financial rehabilitation of the enterprise are summarized. The position of strategic analysis of financial security in the system of financial rehabilitation of the enterprise is defined. The classical procedure of SWOT analysis with assessment of the company’s strengths and weaknesses in relation to its opportunities and threats from the external environment based on PEST analysis is characterized. The advantages and disadvantages of strategic planning of the financial rehabilitation of a business entity are determined. The principles of budgeting, auditing and control of the process of financial rehabilitation of the enterprise are defined. The scientific novelty of the research results lies in the further development of strategic management in the field of financial rehabilitation, ensuring the improvement of the financial condition and strengthening the financial security of economic entities. The applied value of the research results consists in determining the elements of the management mechanism of the financial rehabilitation of the enterprise, in particular, financial interests, functions, principles and methods of management, organizational structure, management personnel, management techniques and technologies, financial instruments, criteria for assessing the financial condition. In this sense, the mechanism for ensuring the financial rehabilitation of the enterprise represents the unity of the management process and the management system.

ОЦІНЮВАННЯ СТАНУ КРЕДИТУВАННЯ РЕАЛЬНОГО СЕКТОРУ ТА ТЕНДЕНЦІЇ ЙОГО РОЗВИТКУ В СУЧАСНИХ УМОВАХ

The tasks performed with the help of the budget help to define the essence of the budget. Without going into details of the controversy of the essence, functions and principles of budgeting, however, I believe it is necessary to determine the initial theoretical positions on these concepts, which have been debatable so far. The purpose of the article is conducting an assessment of the state of real sector crediting and its development trends in modern conditions. Methods used in the research: survey, quantification, ranking, scoring, etc. The hypothesis of the study. When issues related to ensuring sufficient transparency of the costs incurred for the maintenance of a particular state entity are resolved, a problem arises related to the relationship between budget-financed expenditures and expenditures through assistance (grants and sponsorship). Transparency requires the integration of aid-financed spending information for decision-making and budget reporting. Presenting main material. The state helps the formation of highly efficient economic organizations capable of operating in the domestic and world markets in an environment of fierce competition, and concentrating resources on promising areas for updating production. Instruments of direct state influence should be focused on supporting private initiative specifically for the development of modern and newest technological structures, stimulating investment activity in the relevant areas. The originality and practical significance of the research. How the term “budget” itself is defined is of fundamental importance to manage the budget process as effectively as possible. In most cases, this concept is limited to estimates relating to annual appropriations of funds by the relevant legislature. Such a concept, however, may cover only a small fraction of all fiscal transactions. Conclusions. The size of the budget deficit depends on many factors. For example, the government, under pressure from the public or the opposition, cannot stop unreasonable wage growth, especially in conditions of high inflation, while the volume of the budget deficit, respectively, increases by the amount of economically unjustified wages. In such cases, in the absence of other sources of covering the budget deficit, the government resorts to the "traditional" methods for such a situation to cover the budget deficit - a loan from the Central Bank.

Обліково-аналітичне забезпечення антикризового управління сільськогосподарськими підприємствами на засадах бюджетування

The article is dedicated to investigating the peculiarities of organizing the accounting and analytical support for crisis management of agricultural enterprises based on budgeting principles. It is noted that due to the negative impact of the state of war, the agricultural sector has suffered significant losses, and agricultural enterprises have faced numerous challenges that threaten their economic security. The necessity of continuous monitoring of the most important accounting objects of enterprises, taking into account quarterly changes, and implementing preventive measures based on an effective accounting and analytical system, which is the key to efficient crisis management of agricultural enterprises, is substantiated. A methodical approach to forming the organization of accounting and analytical support for crisis management of enterprises based on budgeting is presented. This approach is capable of providing management with the necessary information to make informed decisions to prevent a crisis state and develop measures in line with modern crisis management requirements through the identification of future events, the state of the enterprise, risks, and crisis threats. Based on this approach, the budgeting functions in the accounting and analytical support of crisis management of enterprises are delineated. Recommendations for developing budgets for agricultural enterprises, taking into account the specific features of their production activities, are provided. The desired effect of implementing the proposed accounting and analytical support for crisis management of agricultural enterprises based on budgeting principles should manifest itself in ensuring timely identification of risks and signals of a likely crisis state, the causes of its occurrence, informational support for contemporary crisis decisions, and the promotion of the development of effective strategies and measures to preserve the sustainability of agricultural enterprises in the agricultural sector as a whole.

Методологія бюджетування у взаємозв’язку з управлінською звітністю

In order to effectively manage the company's resources, it is necessary to draw up financial plans, control the flow of income and expenses, and correlate strategic and managerial decisions with the current economic situation. These tasks can be implemented through budgeting. The article aims to generalize the theoretical and methodological principles of budgeting and management reporting and substantiate recommendations for their improvement based on the analysis of best international practices. It was determined that budgeting is considered as: 1) a management function characterized by general scientific and practical approaches to the goal, purpose, tasks and functional content; 2) an element of the management accounting system concerning management reporting. The factors causing the problem of low budgeting efficiency in Ukrainian enterprises were disclosed. The research draws a parallel between traditional budgeting systems, which have proven themselves in the practice of Ukrainian enterprises, and innovative ones of foreign origin. It was proposed to use instrumental technologies of Lean and frugal production in budgeting. It was recommended to develop the ideology of budgeting based on the philosophy of praxeology. This approach will increase the role of budgeting in making managerial decisions. It was determined that an important element of the budgeting process is the internal management reporting system, which is formed in connection with the design and content of budgets. Innovative budgeting methods are factors in the development of the management reporting system. Management reporting should be improved in terms of form, content and design. The authors consider the design of management reporting as a bridge between the executor and the consumer of the information product, capable of increasing the level of understanding and trust between the management accounting accountant and the decision-making centre, i.e. the manager (owner).

Innovative freedom: design and provision

In the process of the study, based on the generalization of the works of famous scientists, the interdependence of the idea, innovation and financial support was determined. This relationship is due to the following components: creativity of the inventor as a transcendence of the idea; uniqueness of innovation as a sign of rationality, consumption, science intensity, usefulness, alternativeness; patterns and rationality of the emergence of innovation as an immanent life; alternativeness of innovation in determining the optimality of financial, energy, time, emotional costs; the intentions of an economic person, which can be manifested in the forms of a traditional and unique way of introducing innovations; financial instruments for introducing innovations; science as a function of life, which is realized through movement towards integrity and causes creativity in innovative design; the need for innovation as a product that optimizes economic costs; growing investment interest in the demand for the latest technologies. The development of the innovation process is analyzed through cyclicity, modeling, consistency, stability, balance, inertia, institutionality, security. Moreover, each methodology contains categories. Thus, new entities, phenomena and forms of their manifestation are illuminated. All areas of the national economy that are contained in the budgetary principles and are based on economy, advertising, efficiency. The initiative of innovative entrepreneurs in choosing forms of presence in the innovation market suffers obstacles from the state authorities. During the recovery period, state regulation pursues a policy of restrictions, a symbolic monetary and foreign exchange policy.

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.

Civil Society, Democracy and Budgeting: Citizens Engagement and Transformations in Nigeria’s Budgeting

ABSTRACT Democracy in the sphere of policy-making warrants fulfilling the popular will by opening spaces for citizen knowledge of the governance processes participation, inclusion and a framework for accountability. The four budget stages of preparation, approval, implementation, and audit necessarily ought to integrate the above principles for an essential nexus with democracy. Using the work of two groups of civil society partners working on Nigeria’s budgeting, we studied the 2016–2019 period around the principles of democratic budgeting as well as explored changes related to civic engagements over the period. We found a monopoly of budget preparation by cloistered bureaucratic experts. The approval stage is marred by politics of vested interests in the legislature and executive with resulting delays in implementation and limited monitoring of the process by citizens. Budget audit suffers delays and non-response to its sensitive findings. Nonetheless, participatory civic engagements have led to a legal framework for civic vigilance in budgeting and enabled the country to save US$500,373,421.40 from frivolous allocations as well as annual budget adjustments for pro-poor inclusiveness and fair distribution of capital projects. Hence, civil society work for democratic budgeting regime is slow but incremental and unfolds amidst encumbering political and institutional dynamics.

MARKETING BUDGET FOR LAUNCHING A STARTUP PRODUCT

The article discusses the approaches for marketing budgeting of startups at a launch stage. There is no single efficient approach to the generation of a startup marketing budget. The selection of the approach will depend on the unique characteristics of the company and product, the target audience and its geography, income, as well as the source of funding (own funds, investor funds, grants, loans, etc.). Marketing and advertising costs in the budget of modern startups have grown significantly over the past ten years due to the following factors: platform consolidation, competition on paid advertising channels, ad blocking and the availability of marketing tools, increased competition, and market saturation. The article summarizes the recommendations that will help to distribute the startup marketing costs effectively. The proposed principles of startup marketing budgeting should be adapted to the conditions of the market environment and the research results of the target audience.

İyi uygulamalar çerçevesinde bütçe ilkeleri ve örnek ülke incelemeleri

Bütçe ilkeleri bütçeleme sürecinin bir bütün olarak ele alındığı durumda bütçelemenin felsefesini ortaya koymaktadır. Böylelikle anayasa kurucularının, yasama ve yürütmenin devlet idaresinin en önemli araçlarından olan bütçeyi nasıl değerlendirdikleri ortaya çıkmaktadır. Bu vesileyle hem anayasal hem de yasal seviyede kabul edilen bütçeleme ilkeleri mali sistemin tamamı üzerinde etkili olmaktadır. Çalışmada bu gerçek göz önüne alınarak bütçe ilkeleri uygulamalarında örnek teşkil edebilecek ülkeler incelenmiştir. Ülke seçimlerinde uluslararası kıyaslamaya imkân verecek Açık Bütçe Endeksinin sayısal göstergeleri etkili olmuştur.

Niepomijalność organów administracji publicznej w zakresie ujawniania informacji dotyczących finansów publicznych w Polsce

Przedmiotem opracowania jest wskazanie wybranych przejawów działalności organów administracji publicznej w zakresie dostarczania informacji o finansach publicznych w Polsce w celu udowodnienia tezy niemożności pomijania działań zarówno rządowych, jak i samorządowych organów administracji publicznej na każdej płaszczyźnie funkcjonowania państwa.Analiza wybranej problematyki zostanie przeprowadzona na podstawie jednej z zasad budżetowych — zasady jawności budżetu. Z uwagi na rozszerzenie jej znaczenia także na jawność i przejrzystość finansów publicznych rozważania będą się opierać na poprzednio i aktualnie obowiązujących przepisach prawa w kontekście działań organów administracji publicznej.Podstawą rozważań będą obowiązujące unormowania prawne związane przede wszystkim z finansami publicznymi, lecz także wynikające z innych aktów normatywnych, wybrane pozycje literatury przedmiotu oraz orzecznictwo sądowe. Te źródła najlepiej bowiem potwierdzą przyjętą tezę o niepomijalności działań organów publicznych również w obszarze funkcjonowania polskich finansów publicznych.