Public Finance System Research Articles

Legal aspect of value engineering implementation in Jakarta (Indonesia) construction projects

In Jakarta (Indonesia) there are regulations on value engineering (VE), but the implementation in construction project somehow still grows slowly. Therefore, in-depth interviews to Indonesian VE experts, regulators and practitioners of infrastructure projects in Jakarta are conducted to obtain the main obstacles and efforts to overcome. Then discussion and seminar on VE is conducted to get more inputs from construction stakeholders. It is found and recommended: stakeholders low understanding on VE government regulations and its benefits so that the role of the VE Indonesia Association in VE socialization should be enhanced, no existence of VE implementation Guideline and the Code of Ethic and thus the existing law should be improved by creating them, no existence of public financial system to accommodate the share saving concept in VE so that it should be improved. These findings and recommended solutions can be useful for any parties elsewhere who face the similar VE implementation problems.

State support of the village social infrastructure systems

The paper presents an analysis of the existing system of state support for rural social infrastructure for the first time. To address this goal the author studied the state information resources and data base of research of the models of state support for the sustainable development of rural areas. The researcher reveals the limitations of research on this subject (the analysis of Web of science, Scopus, Science Direct, Springer Link, Agris, Russian research data base), formulates the descriptive models of various countries in Europe and North America, and groups them into two basic systems. The tests revealed the main factors of the system of public funding of social infrastructure projects. In general financing the algorithms of support for rural social infrastructure were brought to light, the basis of which is made up by two main groups of countries: those with a support system for large rural settlements, selected on the principle of “driving member” and the countries with a system of grant and loan support for rural communities based on projects and local initiatives. The list of systems is not closed, because the study does not affect the countries of Asia, South America, Africa and Australia, which have their own distinctive features. The limitations in a single database of comparable statistical data about the objects of social and engineering infrastructure in rural areas do not allow to assess the effectiveness of investments. The author comes to the conclusion that single common methodology and standards for the evaluation of all forms of efficiency (economic, social, demographic and environmental) the use of state and interstate programs of support of social and infrastructural projects in rural areas, including a preliminary assessment of the needs in social and engineering facilities are necessary.

Legal Regulation of Taxation in The Swiss Confederation

The article considers the Swiss model of fiscal municipalization from the ideological and methodological positions of the anthroposociocultural approach. Such components of this approach as historical and genetic methods together with the method of system-structural analysis were applied especially thoroughly and consistently. By means of them it was found that the Swiss model of fiscal decentralization is an attributive part of the construction of public power in Switzerland – municipalization from bottom to top. Special attention is drawn to defining the basic legal features of the Swiss model of fiscal municipalization. It is argued that subsidiarity does not paradigmatically coincide with decentralization: the principle of subsidiarity postulates the sovereignty of the basic territorial collectives and considers the possible conditions for its limitation for general social needs and values. On the contrary, the principle of decentralization has the national level of governance as the starting point and considers the conditions of delegation of certain tasks and competences by the state to the lower levels of public power hierarchy in the principal frames of state sovereignty. Specificity of the principle of subsidiarity in Switzerland is that cantons play dual role from the standpoint of administrative federalism. On the one hand, they are the bearers of sovereignty of public power, including taxation. On the other hand, they are the sole bearers of administrative authority and are obliged to serve national interests, that is, the needs of the entire Swiss Confederation. Paradox is that this service function of the cantons gives them considerable benefits in the inevitable opposition to the Union state, when it comes to provision of services of the entire fiscal system and the entire system of public finance.

PRINSIP-PRINSIP KEUANGAN PUBLIK ISLAM

Islamic Public Finance is a financial concept based on Islam, which by planting religious values will have an impact on positive values. The source of Islamic public finances is certainly the largest base of acquisition is zakat, infak, sadakah, and waqf. The ultimate goal of Islamic public finance is the falah. Different characteristics of the conventional is a separate value of Islamic public finances, in which there are views on zakat and taxes, payments, expenses, and equilibrium in the public sector. The instruments that occur in public finance should also be considered, among others are zakat, corporate assets, infak, kharaj, waqf. The collected power of this public finance system has several foundations of Islamic values, which by these principles will make a firm foundation in developing Islamic public finances.

The mechanism of higher education funding in Ukraine: nationwide and local perspective

Despite positive transformations in higher education in Ukraine since 2014 when a new Law was introduced, the system of public funding still remains a highly centralized and strongly budgetary dependent based on the state planning methods, which in the situation of lack of resources becomes more imbalanced and inefficient.The current system of allocation of the “state order for training the specialists with higher education” does not ensure an equal and fair competition among top 10 universities and the rest, especially regional, and the system cannot guarantee state-funded places to all applicants with high results of the External Independent Testing exams. At the same time, only a small share of graduates work on the specialty they acquired. The situation on the labor market does not encourage graduates to be employed in public institutions, which is harmful for the public sector of economy, especially in the regions. It proves that the system of distribution and allocation of government funding between higher education institutions in Ukraine needs urgent reforming.The objective is to analyze the current system of higher education funding in Ukraine in its national dimension and local perspective, and to develop proposals for its improvement, considering the selected good practices and using the following methods: literature analysis, method of retrospective analysis to research budgetary expenditures, determining the Net Present Value for calculating the government cost. Finally, a feasible proposal to reform the mechanism of public higher education funding was developed.

Accounting and political parties: explaining the “why” of an Italian light touch regulation (1974)

PurposeThe purpose of this paper is to explain the reasons why Law no. 195 of 2 May 1974, which established a system of public funding for the Italian political parties, introduced a system of controls that was light touch in nature.Design/methodology/approachThe paper integrates the theoretical framework on regulatory space, proposed by Hancher and Moran (1989), with that of legitimacy (Suchman, 1995) to explain the peculiar nature of the system of controls introduced by the Law. Moreover, a set of primary and secondary sources is used to provide a full comprehension of the context, of the relationships among the actors involved in the regulatory process, and of the nature of the regulated issues.FindingsBesides showing that the nature of the output of a regulatory process can be understood as the effect of the peculiar configuration of the regulatory space in which it takes place, the study also sheds light on the role that legitimation can play with regard to the other features of the regulatory space, namely on its ability to strengthen or to limit their effects on the output of the regulatory process.Originality/valueThe paper deals with accounting and political parties which is a much underexplored topic in the field of accounting history. In addition, from a theoretical standpoint it contributes to extending the theoretical framework by Hancher and Moran (1989).

Niveles y distribución geográfica de la cobertura sanitaria en España

Tomando como información la Encuesta Nacional de Salud de 1993, en este artículo se analizan los niveles de cobertura sanitaria de la población española, distinguiendo entre modalidades (públicas y privadas) y tipo de cobertura (total, exclusiva y solapamiento). Se identifican, además, los modelos geográficos que se perfilan en la distribución de las modalidades más extendidas. Niveles y distribución de cobertura sanitaria responden a los dos rasgos fimdamentales del sistema de salud español: la práctica universalización de la cobertura sanitaria pública, básicamente a través de la modalidad de Seguridad Social, y el carácter complementario de la cobertura privada, mediante los Seguros Médicos Privados.
 
 [fr] Dans cet article, basé sur les données de l'Enquête Nationale sur la Santé faite en 1993, on analyse les niveaux de l'assurance maladie de la population espagnole en faisant la différence entre les modalités (publiques et privées) et les types de couverture (totale, exclusive et multiple). En outre, on identifie les modèles géographiques qui se dessinent dans la distribution des modalités les plus développées. Les niveaux et la distribution de l'assurance maladie repondent à deux caractéristiques fondamentales du Système d'Assurance Maladie espagnol: l'une correspond à la presque généralisation de l'assurance maladie publique à travers la Sécurité Sociale et l'autre à l'Assurance Maladie des régimes privés comme éléments complémentaires du système.

Keeping up with or running away from the Joneses: the Barro model revisited

This paper reexamines the Barro growth model in a context of interdependent preferences with consumption externality. Agents care about both consumption and social status, which is determined by their relative consumption in society. The results underline the individuals’ preferences for status as a key role in explaining long term growth and welfare. In particular, a higher growth rate may correspond to a lower social welfare if increment in growth is explained by status-seeking accompanied by the keeping up with the Joneses. Furthermore, we discuss two public financing systems from the viewpoint of growth and welfare. If lump-sum tax always implies a higher growth rate, income tax may perform better in terms of welfare when government size becomes sufficiently large.

Financing the Church in Italy: Evolution and Perspectives from the Ecclesial Lens

The article describes the essential features of public funding of the Church in Italy, outlined in terms of the 1984 agreement and restricted to three aims : maintenance of the clergy, charitable work in aid of the national community and the third world, running costs related to worship. In the last few years, monies coming from the system of public financing have been channelled towards a number of wideranging objectives. First and foremost, that of an equitable distribution and solidarity within dioceses. Another development objective regards transparency and the public understanding of the Church’s management of its economic resources, as an expression of the active involvement of the whole community.

The main directions of reduction of debt risks in the medium-term perspective

The principles of forming the main directions of policy in the sphere of public debt, aimed at reducing debt risks in the medium term, are considered. The influence of macroeconomic factors on the formation of administrative decisions in the debt sphere is determined and the consequences of measures implemented to support the banking sector in the conditions of the global economic crisis are analyzed. A forecast model has been formed, which provides an assessment of policy changes in the area of public debt under different scenarios ofUkraine's economic development in the medium-term perspective. In order to increase the effectiveness of measures to reduce debt risk, considerable attention should be paid to the formation of an automated system that provides the process of managing the public debt with the necessary statistical data. At the same time, such a system should regularly undergo an external audit, and the organization of the formation and dissemination of reporting is constantly improved. Legal norms in the debt area should ensure the regular publication of data on the state debt, as well as the results of public administration in this area. Public risk assessment is of great importance for strengthening trust not only for the state debt policy, but also for the public finance system as a whole. It is also important in this direction to establish an exchange of information between the Ministry of Finance ofUkraineand the National Bank ofUkraine. Such cooperation will promote the necessary coordination during the formation of financial and monetary policy inUkraine. Although such tasks are defined in a number of normative acts ofUkraine, these goals are not realized in practical terms. Another area of reduction of public debt risks is the establishment of a permanent dialogue between the Ministry of Finance ofUkraineand national and foreign investors. This dialogue is needed to inform about the characteristics of the country's debt portfolio and to get information about the benefits and expectations of investors. Debt managers should try to provide investors with information on borrowing transactions, methods for calculating government debt, interest rate and refinancing risk, maturity structure, derivative instruments, and government guarantees. Central level bodies should be organized in order to assess the impact of the risks associated with contingent liabilities. Such an assessment can be an integral part of the medium-term public debt management strategy, which is developed annually by the Ministry of Finance and approved by the government. Contingencies represent potential financial requirements for the government, which may become real requirements in certain circumstances. This primarily concerns financial support measures, state-owned enterprises or other public administration bodies. Other commitments, such as the support of pension funds, should also be taken into account. Deposit Guarantee Funds for individuals, etc. Experience has shown that these contingent liabilities can be very large, especially when they involve recapitalization of the banking system. In order to minimize costs and risks in the medium to long term, the finance ministry and the government as a whole should take adequate measures to create an efficient government securities market. Such a market will help form a mechanism for financing the state budget without relying on the central bank. In addition, by expanding the capacity and liquidity of the government securities market, the Ministry of Finance, together with the National Bank and public oversight bodies and market participants, can reduce the cost of debt servicing in the medium and long term by reducing the premium for liquidity.

The Significance of Openness and Transparency for Accountability in Public Finances

Abstract An essential condition for asserting responsibility in public finances is that they are open and transparent. The Public Finance Act mentions ways of applying the principles of openness, and also stipulates the entities obliged to present data and information on public finances. There is, however, no legislation connected directly with transparency. So do the general requirements of classification and of accountancy and reporting principles constitute sufficient premises for accountability and asserting responsibility? An analysis of the reports and documents concerning the Polish public finance sector indicates that the processes of collecting and spending public funds are insufficiently transparent. The information system enables formal verification of discipline of public finances; however, it does not provide a sufficient basis to assess the effectiveness and efficiency, which are of key importance in terms of accountability. The aim of the article is to analyse the requirements and standards in the field of openness and transparency insofar as these concern the responsibility and accountability of public authorities, along with elements of how these are assessed in the Polish public finance system. A normative descriptive method was applied which took into consideration elements of finance theory, as well as an analysis of practical experience in the field of how public sector bodies function in Poland. The research objectives are realised mainly on the basis of a critical review of the literature on the subject, and an analysis of legal acts, reports and other documents of domestic and international institutions. The considerations and analyzes have led to several key applications to develop the principles of openness and transparency in relation to improving the accountability of public finances.

Party funding regulation in Poland (1990–2015): an appraisal

In the second half of 2015 Poland held a referendum in which voters were asked to give their opinion on the way party funding was regulated. Of those 7.8 percent of voters who turned out at the polls, only 17.4 percent voted in favour of the system of public funding in force at the time. Taking into consideration such a “negative” social opinion regarding the Polish regime of party funding, this article examines how political party funding (bothpublic and private) is regulated in Poland, how it has changed over time, and how it could be developed. The main conclusion is that even if the current regime is better than the one existing before 2001, there is still much room for improvement.

Modern development of management system of public finances in Ukraine: accounting segment in providing innovation and investment direction vector

The article deals with the problems of innovation and investment development of public finances, their system of management and budget accounting as the basis of its information and analytical support. In the process of processing normative legal acts of the sphere of public finances, the main vectors, the tasks of modernizing the system of management of public finances and the role of budget accounting in the above-mentioned processes are identified as the basis of the information-analytical support of the system of management of public finances. The main results of the modernization of budget accounting in Ukraine and the transition to the accounting system in the sector of general government are presented. The general description of the main provisions of the Strategy for Reforming the Public Finance Management System for 2017–2020 is provided and the causal links of accounting performance in the general government sector and other components of the public finance management system are confirmed. The article makes conclusions on improving the innovation and investment climate of Ukraine's economy through the final realization of the goals and objectives of the above-mentioned normative document.

China's 40 Years of Fiscal and Tax Reform: A Basic Trajectory

AbstractThe present paper describes the trajectory of China's fiscal and tax reform in the past 40 years, which can be summarized in five phases. The reform commenced with “decentralizing power and transferring benefits.” Then, under great fiscal pressure, institutional reform was instigated, which aimed to establish a new fiscal and tax system. To regulate the government revenue and expenditure beyond the fiscal and tax system, reforms were put in place to build an institutional framework for public finance. As the fiscal and tax reform had gradually entered the more sophisticated phases, China took a series of measures to further improve the public finance system. Since 2012, based on the overall plan of comprehensively deepening reform, China has embarked on establishing a modern public finance system. The present paper characterizes China's fiscal and tax reform as gradually moving toward a system that aligns with the overall reform and complements the goal of marketization and modernization of state governance.

Outpatient Worsening Heart Failure as a Target for Therapy

ImportanceHospitalizations for worsening heart failure (WHF) represent an enormous public health and financial burden, with physicians, health systems, and payers placing increasing emphasis on hospitalization prevention. In addition, maximizing time out of the hospital is an important patient-centered outcome. In this review, we discuss the concept of outpatient WHF, highlight the rationale and data for the outpatient treatment of WHF as an alternative to hospitalization, and examine opportunities and strategies for developing outpatient “interceptive” therapies for treatment of worsening symptoms and prevention of hospitalization.ObservationsWorsening heart failure has traditionally been synonymous with an episode of in-hospital care for worsening symptoms. While WHF often leads to hospitalization, many patients experience WHF in the outpatient setting and carry a similarly poor prognosis. These findings support WHF as a distinct condition, independent of location of care. For those that are hospitalized, most patients have an uncomplicated clinical course, with diuretics as the only intravenous therapy. Although complicated scenarios exist, it is conceivable that improved tools for outpatient management of clinical congestion would allow a greater proportion of hospitalized patients to receive comparable care outside the hospital. Most patients with WHF have a gradual onset of congestive signs and symptoms, offering a potential window in which effective therapy may abort continued worsening and obviate the need for hospitalization. To date, outpatient WHF has received minimal attention in randomized clinical trials, but this high-risk group possesses key features that favor effective clinical trial investigation.Conclusions and RelevanceAs the public health and economic burdens of heart failure continue to grow, recognizing the entity of outpatient WHF is critical. Efforts to reduce heart failure hospitalization should include developing effective therapies and care strategies for outpatient WHF. The outpatient WHF population represents a major opportunity for therapeutic advancements that could fundamentally change heart failure care delivery.

A Technology-Enabled Solution to Manage Referrals to Hospice and Palliative Care Beds: The Ottawa SMART System as a Case Study

Ottawa has a 31-bed palliative care unit (PCU) and two residential adult hospices (total 19 beds). In 2013, we initiated a project to improve the referral and triage processes to these beds. Previously, there were two separate paper-based systems with duplication, inefficiencies, delays and inappropriate patient placements. The multipronged approach included clarifying the respective roles of the PCU and hospices, creating a single referral and triage office and developing an e-platform. We leveraged technology that was available in the public-funded system. This paper describes the development processes, lessons learned, and the final system, referred to as System to Manage Access, Referrals and Triage (SMART).

The Effect of Property Reassessments on Fiscal Transparency and Government Growth: Evidence from Virginia

An important concern to the efficiency of public finance systems is that voters suffer from various illusions that can politicians can exploit to expand the public sector. This paper contributes evidence of this effect on a public finance system through the revenue elasticity hypothesis, which is a form of fiscal illusion in which voters confuse tax rates with tax burdens in the approval of public spending. The applied empirical setting is Virginia cities and counties from 2001 to 2011, where the timing of mass property reappraisals is exogenous but known to local policymakers in setting the annual budget. The results indicate that mass reappraisals, which reduce tax rates, do cause property tax increases, as do reappraisals that will result in future tax rate increases. These revenue shocks are then smoothed into expenditures through the management of assets, indicating that policymakers prefer the spending to be drawn from future cash reserves rather than from immediate projects that might draw attention to the source of fiscal illusion.

Public Finance and Rural Development in Nigeria: Empirical Evidence from the Structural Equation Modeling

This study looks at the Nigerian public finance system and the quality of life in rural areas. Specifically the study aims at assessing the implementation and elements leading to the constraints to rural investment in those infrastructural facilities that help in improving or enhancing the quality of rural life in Benue state Nigeria. Data was gathered from nine local government areas in Benue state. Two-hundred and seventy questionnaires (270) were distributed (i.e. Thirty questionnaires duly distributed to each selected local government) and a total of two-hundred and forty-two were returned. A comparative methodological approach of multiple-regression analysis and the structural equation modeling (SEM) was adopted. Findings of the SEM analysis revealed that public finance in rural areas of the selected sample size in Nigeria has not been effective and efficient in all ramifications. While the result from the regression model established that, the five key indices used in the study established poor respective outcome. These were found to be due largely from the joint account system between the state/local government which poses serious challenge when it comes to the issue of financing rural infrastructural projects and other social amenities. The study recommends among others the need for a newly architected public finance system in local governments in Nigeria and this should be directed in a way and manner that will be efficient and prudent to move the developmental prospects of the local governments in the rightful direction in Nigeria.

FISCAL POLICY FOR ECONOMIC DEVELOPMENT

Urgency of the research. Commonly, tax and budget instruments’ nature and degree of influence on the economic development depend on the share of GDP redistribution through the public finance system. But it isn’t the one and only influencing factor. The national fiscal architectonics model and the quality of state institutions are essential as well. Target setting. Under modern conditions of the global economy delayed growth rate, the further development of the statements on the possibility evaluation of discretionary fiscal policy measures implementation, their scope and composition to accelerate economic growth is advisable. Analysis of resent researches and publication. The questions of determining the fiscal policy role for the economic development regulation are explored in numerous works written by P. Arestis, G. Dell’Ariccia, A. Afonso, R. J. Barro, O. Blanchard, E. M. Engen, P. Mauro, V. Tanzi, I. Chugunov, D. Furceri etc. Uninvestigated parts of general matters defining. At the present development stage of financial relations, it is important to deepen the scientific research in the area of estimating the budget and tax instruments’ value and degree of influence on the country’s economic development dynamics. The research objective. The main aim of this article is to develop theoretical and methodological principles of fiscal policy formation in the context of providing the necessary prerequisites for a long-term economic growth. The statement of basic materials. Using the convergence of neoclassical and neo-Keynesian approaches as well as correlation and regression analysis methods, the influence of such factors as the level and the structure of taxation, the budget expenditures, the budget deficit, and the public debt on economic development was examined in this article. Conclusions. In modern conditions, fiscal policy has a significant regulatory impact on the economic processes by an integrated combination of fiscal architectonics instruments (taking into account the variation of composite structure models, time lags, and economic cycles).

FORMATION OF MODERN MODEL OF BUDGET MANAGEMENT BASED ON METHODS OF PUBLIC ADMINISTRATION

The review of scientific studies and publications confirms that in Ukraine, the interest of scientists in the theoretical and practical problems of budget management is growing. Domestic and foreign scientists have repeatedly drawn attention to the need for full and timely disclosure of the state of the formation and use of financial resources of society. The foreign experts studied foreign experience and grounded measures that could and should contribute to the achievement of the effectiveness of this process, the methods of ensuring transparency of the state budget and involving the public as the subject of control over the use of budgetary resources, in particular, public hearings, “e-government”, are an area public administration. Budget management is an important instrument of state regulation of the activity of authorities. According to the analysis, one can see that today it is necessary to distinguish the following types of budget support as: informational, organizational, methodical, and regulatory. The state implements a policy of budgetary management with the help of management bodies. There is a close interconnection between representative, national, and operational management bodies. The principle of transparency of the budget system (in conjunction with its publicity) is enshrined in Article 7 of the Budget Code of Ukraine. An attention is drawn to the fact that the budget system as a “totality of the state budget and local budgets” is transparent by definition. It is fair to note that insufficient transparency of the budget process is not only a domestic problem. The Board of Directors of the IMF approved one of twelve internationally recognized financial standards – the Code of Good Practices on Fiscal Transparency. An assessment of the state of implementation of the principle of publicity and transparency in the budget management of Ukraine makes it possible to draw the following conclusions: 1. The content of the principle of publicity and transparency in the text of the Budget Code of Ukraine should be amended by formulating it as a principle of the budget process, while it is necessary to specify the ways of its practical implementation. 2. The full implementation of the principle of publicity and transparency of the budget process will increase the level of trust of citizens to the authorities of different levels, which is one of the factors of successful implementation of the state social and economic policy, and will deepen the democratic principles of the formation and development of Ukrainian society. 3. The lack of transparency of budget information at the planning stage significantly impairs the ability to manage budget resources, primarily at the local level, exacerbating the problem of full budget financing, especially at the end of the budget period. 4. Budget information for an overwhelming majority of stakeholders remains inaccessible, inaccurate, untimely, and incomplete in Ukraine, which led to a deterioration of Ukraine’s position in the international rating by the Open Budget Index. 5. Improving the transparency of the budget process can be achieved through the use of the above measures. Their implementation will serve not only to improve the quality of the budget process and the effectiveness of budget management but also to establish harmonious social relations. At the same time, the task of developing further directions of increasing publicity and transparency of the mechanism of functioning of the entire system of public finances in Ukraine remains relevant.