Public Finance System Research Articles

Regulatory framework for financial reporting in Serbia

This paper deals with matters related to the regulatory framework for financial reporting in Serbia. For Serbia, as a country which is still in the process of transition and has not yet implemented the necessary reforms and created market institutions, financial reporting and accounting reforms are one of the key items in the process of creation of the new market environment for business operations of firms, investments, faster economic growth and efficient functioning of the public sector and financial regulatory systems. The regulatory framework of financial reporting in Serbia includes consideration of the development and results of models and standards for the disclosure of financial information in Serbia (which has been a country in transition since 2001) which implies help from international donors. The paper emphasizes the directions and needs for further reforms and development of accounting and auditing in Serbia, while the results of the so-far reforms have been evaluated with a view and criteria of future needs and needs for the improvement of corporate governance standards. That approach enabled observation of plans, actions and proposals for further reforms in terms of revealing and publicizing financial information in financial reports in Serbia. Speaking of the regulatory framework, a very significant aspect is the aspect of timeliness of financial reporting and audit reports in Serbia which has to be analyzed based on contemporary literature and using the appropriate methodological framework. In fact, this model must be attested in practice with a view to making recommendations in the area of quality improvement of timely disclosure of financial information in Serbia. Although timeliness is undoubtedly a very important aspect of financial reporting, it will not be addressed in greater detail by the authors of this paper. The authors of this paper mainly deal with the issue of regulatory financial framework in Serbia. In the concluding part, authors analyze the regulatory framework of financial reporting with all its advantages and disadvantages, while also offering suggestions for its improvement in the future.

Electoral Legislation Reforms, State Funding and Political Parties in the Czech Republic: a Sign of the Cartelization of Party Politics?

The paper analyses the system of public funding of political parties in the Czech Republic. The first part of the paper presents an overview of the laws governing political party funding in a wider socioeconomic context. The second part of the paper presents empirical analyses of party funding, focusing primarily on the role that state funding plays in the overall political party income structure. Specific attention is paid to the differences between parliamentary and non-parliamentary political parties. The overall findings suggest that the system of state financing in the Czech Republic does not promote equality and inclusivity within the party system. On the contrary, the significant disproportion of funds available and allocated to parliamentary parties seems to promote and solidify the status quo.

The Role of the Fiscal Discipline in Public Finance Management in Developing Countries

Public financial management plays key role in is very important for developing, transitional and poor countries for several reasons. First, these countries need large financial resources to finance the growth, physical infrastructure, social and other public services. Secondly, limited resources require public finance management system to be efficient, disciplined, transparent, independent and accountable. Finally, public finance system holds together the whole system of government agencies with their programs and objectives which are usually tied to the economic development strategy of the country; therefore its failure may lead to the failure of the whole system and thus spark social tensions and upheavals.

State-Building and Tax Regimes in Central America. By Aaron Schneider. New York: Cambridge University Press, 2012. 260p. $90.00.

After a long period waiting in the wings, the Fisc (the state treasury, or the larger system of public finance) has returned to center stage in comparative politics. During this time, fiscal sociologist Joseph Schumpeter was more likely to be cited for his “creative destruction” thesis, than for his “crisis of the tax state” analysis. While the “return to the state” dates back to the late 1970s, it still took another decade before taxation became a monograph headliner, with influential works by Margaret Levi (Of Rule and Revenue, 1988), Charles Tilly (Coercion, Capital and European States: AD 990–1992, 1992) and Sven Steinmo (Taxation and Democracy: Swedish, British and American Approaches to Financing the Modern State, 1996). Since then, tax policy and extractive capacity have increasingly come to be recognized by comparativists as central to state-building projects, thus confirming Edmund Burke's old adage that “the revenue of the state is the state.” As part of this fiscal revival in comparative politics, Aaron Schneider has rightfully earned the status as leading expert on Central America with his new book, State-Building and Tax Regimes in Central America.

Electoral Competition in Connecticut’s State House Races: The Trial Run of the Citizens’ Election Program

The Citizens Election Fund, Connecticut’s version of a clean elections law, was established in 2005 in the wake of the corruption scandal during the administration of Governor John Rowland. Modeled after the public financing systems of Maine and Arizona, Connecticut’s law has been touted as the most comprehensive in the nation. Scholars have hypothesized that states with public funding of campaigns have more competitive elections (Werner & Mayer, 2007). This paper will address whether the introduction of the Citizens’ Election Program has increased the level of electoral competition by specifically focusing on state house seats in Connecticut during the 2008 and 2010 election cycles. Contestation for seats in the Connecticut General Assembly is a particularly salient issue due to the fact that many seats typically go unchallenged and as Mayer (2007) observed “a seat in the Connecticut House or Senate had become one of the safest offices anywhere, approaching if not exceeding the security of membership in the U.S. Congress.” The findings suggest that the hypothesized positive relationship between public financing and electoral competition show mixed results. After the introduction of the Citizens’ Election Program, the number of uncontested seats decreased slightly with more challengers emerging to contest incumbents in the 2008 and 2010 election cycles. While some positive effects are seen by the 2010 election cycle with the margin of votes cast for winners narrowing in 41% of house races, the vast majority of house incumbents continue to win and do so by larger vote margins. Finally, the overall reelection rate for incumbents remained largely unchanged. Further research with a longer time horizon that is inclusive of more state house elections will have to be conducted before any firmer conclusions can be drawn regarding the efficacy of the Citizens’ Election Program.

Financiación del servicio público de transporte urbano: un estudio empírico en las empresas españolas

The sensitivity in the public urban transport sector, focusing on a progressive improvement in the economic and technical management of passenger services and the need to design a transparent public finance system and according to the current economic circumstances, has led to increased interest and concern to improve the knowledge of its structure and evolution. This has encouraged the emergence of the conditions for the adoption of the initiative of the institutions that have promoted the creation of the Costs and Funding of Collective Urban Transport Watchdog (TUC Watchdog). The TUC Centre's objectives focus on the study of the operating conditions and financing of surface urban public transport concessions in Spain, through the generation of representative measures of behavior patterns, in order to enhance the real knowledge of the sector.In this paper, we present a study of the current problems in the financing of urban public transport in Spain, from the work carried out for the first report of the TUC (2008-2009).

Constitutionalizing Property-Owning Democracy

Constitutionalizing Property-Owning Democracy

Functioning of the Second Level Management Control in Light of the Declarations Made by the Polish Local Self-Government Bodies

Entities operating in the public finance sector have recently started facing the challenge of implementing management control mechanisms. In order to successfully handle this task, it is not enough just to involve managers and employees of the given organisation, but it is also necessary to foster conditions favourable to improving management processes for public entities. Since management control is a rather new instrument of the public finance system, the need for ongoing monitoring of the progress taking place in the sphere of its implementation in individual institutions is becoming more and more evident. Bearing the foregoing in mind, the authors of the article have attempted to assess the extent of the management control implementation in local self-government bodies by analysing the declarations made by the these institutions pertaining to the management control status for the years 2010-2011.

Fiscal federalism and prospects for metropolitan transportation authorities in Portugal

Fiscal federalism refers to the attribution of public finance functions among different levels of government. We examine Portugal's metropolitan transportation sector through the fiscal federalist lens, in light of the country's decentralization efforts and new relevant legislation. We clarify basic principles of fiscal federalism and adapt them to the finance of metropolitan transportation systems – typically characterized by multiple jurisdictions, numerous externalities and equity concerns – showing the inadequacy of general practice. Portugal's overall public finance system partially adheres to fiscal federalist principles; the transportation sector less so. Metropolitan transportation faces particular troubles, with few direct user fees, prices inadequately reflecting costs, and heavy reliance on central government subsidies for public transportation investments and operations. A new law creating metropolitan transportation authorities is only modestly consistent with fiscal federalist principles, since it inadequately details financial responsibilities and remains under heavy central government control. Absent additional reforms, the new metropolitan authorities should aim to make the transportation finance system explicit and test incentive grants to induce inter-municipal cooperation.

Public Finance and Social Protection System Reforms in Mexico: Part II

Mexico needs a proposal to integrate reforms into the social protection system as an indispensable factor for social cohesion with holistic fiscal reforms that create and nurture viability in the long term and improve the country's competitiveness. There is also a need for reforms that seek to break through the prevailing economic stagnation and provide the nation with medium‐ and long‐term development opportunities. Specifically, it needs a proposal that addresses the overwhelming need to formalize a new social contract based on justice and sustained by economic growth that allows Mexico's democracy to work for all of its residents. This document seeks to conduct an exercise that is rarely attempted in Mexico: establish achievable short‐ and medium‐term goals for universal social protection tied to revenue sources that provide long‐term viability and sustainability.

Private Health Care Sector in Russia:Present State and Development Prospects

The private sector which has emerged in the Russian health care system has become a competitor to the public one and has pulled a part of effective demand of the middle class. It has developed out of the public health care financing system. Depending on the policy of the state towards modernization of health care, the private sector can continue to grow as an alternative to the public one, but it can be a tool of modernization and an organic part of an integrated health care system.

Proactive Program Management for Development National Finance System in Turbulence Environment

The global financial crisis has become a powerful impulse for the initiation a number of development programs in public finance system in many countries. Every time when we come to large-scale changes (such as those associated with the project “Reboot the public finance system of Ukraine”) it is difficult to determine all assumptions and driving forces for changes or to assess their impact. The program of innovation development, in this case carrying out the “reboot” of public finance, is being developed and implemented by the Ministry of Finance of Ukraine on the basis of evaluation of its positive impact on economic development, with effective interaction with the environment in order to create innovative products such as the Budget Code, Tax Code, Virtual University, distance learning courses for public officials, system of independent assessment of the competence of staff within the regulated processes. Products and results of the program are evaluated according to profile of values, specified in the program of President of Ukraine and supported by the people of Ukraine. The necessity of the success program management in the reformation of complicated systems, especially the finance system of Ukraine is discussed in the report. The authors suggest seven keys of success methodology, which make it possible to elaborate the strategy of reforming the domestic finance system in turbulence environment. The issues of measuring the force of the impact of innovation and change on the organizational system remain open and will be discussed.

Perspektiven der Bürgerkommune in Deutschland – von der kleinen Demokratie zur erweiterten Partizipation?

From a practical and academic point of view the journal Verwaltung und Management (VM) contains reports about leadership and management, public service, structures and procedures, human resources development, IT in administration, IT systems, public finance, budget and accounting systems. It provides a professional forum for mutual exchange of ideas and experience to enhance efficiency and productivity in the public sector. This journal addresses leaders and scholars in administration, social scientists, consultants, IT system houses and education centers. Website: www.vum.nomos.de

Praxisbericht zur Umsetzung des Kommunalen Schutzschirmes in Hessen

From a practical and academic point of view the journal Verwaltung und Management (VM) contains reports about leadership and management, public service, structures and procedures, human resources development, IT in administration, IT systems, public finance, budget and accounting systems. It provides a professional forum for mutual exchange of ideas and experience to enhance efficiency and productivity in the public sector. This journal addresses leaders and scholars in administration, social scientists, consultants, IT system houses and education centers. Website: www.vum.nomos.de

Strategisches Personalmanagement in der öffentlichen Verwaltung im Zeichen des demografischen Wandels

From a practical and academic point of view the journal Verwaltung und Management (VM) contains reports about leadership and management, public service, structures and procedures, human resources development, IT in administration, IT systems, public finance, budget and accounting systems. It provides a professional forum for mutual exchange of ideas and experience to enhance efficiency and productivity in the public sector. This journal addresses leaders and scholars in administration, social scientists, consultants, IT system houses and education centers. Website: www.vum.nomos.de

Verwaltungskooperationen im Donauraum

From a practical and academic point of view the journal Verwaltung und Management (VM) contains reports about leadership and management, public service, structures and procedures, human resources development, IT in administration, IT systems, public finance, budget and accounting systems. It provides a professional forum for mutual exchange of ideas and experience to enhance efficiency and productivity in the public sector. This journal addresses leaders and scholars in administration, social scientists, consultants, IT system houses and education centers. Website: www.vum.nomos.de

European Public Sector Accounting Standards (EPSAS) – Bedarf, aktuelle Entwicklungen und Perspektiven

From a practical and academic point of view the journal Verwaltung und Management (VM) contains reports about leadership and management, public service, structures and procedures, human resources development, IT in administration, IT systems, public finance, budget and accounting systems. It provides a professional forum for mutual exchange of ideas and experience to enhance efficiency and productivity in the public sector. This journal addresses leaders and scholars in administration, social scientists, consultants, IT system houses and education centers. Website: www.vum.nomos.de

Länderübergreifendes Benchmarking im Justizvollzug

From a practical and academic point of view the journal Verwaltung und Management (VM) contains reports about leadership and management, public service, structures and procedures, human resources development, IT in administration, IT systems, public finance, budget and accounting systems. It provides a professional forum for mutual exchange of ideas and experience to enhance efficiency and productivity in the public sector. This journal addresses leaders and scholars in administration, social scientists, consultants, IT system houses and education centers. Website: www.vum.nomos.de

Verwaltungssteuerung 3D – der Finanzreformwürfel

From a practical and academic point of view the journal Verwaltung und Management (VM) contains reports about leadership and management, public service, structures and procedures, human resources development, IT in administration, IT systems, public finance, budget and accounting systems. It provides a professional forum for mutual exchange of ideas and experience to enhance efficiency and productivity in the public sector. This journal addresses leaders and scholars in administration, social scientists, consultants, IT system houses and education centers. Website: www.vum.nomos.de

Koordiniert entmachtet: Die Schwächung der BaFin durch den Ausschuss für Finanzstabilität

From a practical and academic point of view the journal Verwaltung und Management (VM) contains reports about leadership and management, public service, structures and procedures, human resources development, IT in administration, IT systems, public finance, budget and accounting systems. It provides a professional forum for mutual exchange of ideas and experience to enhance efficiency and productivity in the public sector. This journal addresses leaders and scholars in administration, social scientists, consultants, IT system houses and education centers. Website: www.vum.nomos.de