Public Finance System Research Articles

The price of the throne. Public finances in Portugal and Castile and the War of the Castilian Succession (1475–9)

ABSTRACT The reign of Henry IV of Castile ended without a clear heir to the throne, triggering a military conflict between the candidates, Isabella and Ferdinand – the future Catholic Monarchs – and Joanna and Afonso V of Portugal. Ultimately, what was at stake was the balance of power not only in the Iberian Peninsula, but in Western Europe more broadly. The conflict transcended the military field and tested the strength and adaptability of two precocious and dynamic state financial structures. The aim of this article is to compare the way both public finance systems coped with this conflict and responded to a challenge that was to shape their future evolution.

Jedan pogled na razvitak trezora

In this paper, the author aims at providing a comparative and historical view of the issue of the development of the treasury institute as one of the supporting pillars of the public finance system. To that end, a review of the genesis of this institution in the most significant comparative systems and the domestic legal area is presented. Treasury business does not mean exclusively executing orders from the Central Bank, but it is necessary to differentiate as many functions as the budget execution process requires. Traditional vaults had predominantly a cashiering and control function, so that, later on, the banking function, which implies the independence or great autonomy of the vault, would became significantly more visible. In contemporary conditions, we can see it as a parabanking institution.

ДЖЕРЕЛА ФІНАНСУВАННЯ ДЕРЖАВНОГО БЮДЖЕТУ В УМОВАХ ПОВНОМАСШТАБНОЇ ВІЙНИ В УКРАЇНІ

All possible ways in the domestic and foreign markets to maximise the budget's financial resources in the context of a full-scale war in Ukraine are described. A detailed analysis of the structure of sources of financing the state budget in Ukraine in 2022 is carried out. The role of the NBU in financing the state budget through the issue of hryvnia and the redemption of military bonds issued by the Ministry of Finance are identified. The legislative grounds (Resolution of the Cabinet of Ministers of Ukraine No. 156, Resolution of the NBU Board No. 43, amendments to the Law of Ukraine No. 679-XIV), positive and negative aspects of the National Bank of Ukraine's loans to the state during the war are presented. It is proved that financial assistance from abroad (in addition to military and humanitarian aid) was crucial for maintaining Ukraine's governability and stability. The article analyses macro-financial assistance to Ukraine from the USA, the European Union, international financial organizations and institutions. The advantages and disadvantages of financing the budget in the form of loans and grants from the EU are presented. The article describes certain targeted programs for which loans or grants were provided by other countries. The conditions for granting concessional loans to Ukraine from the IMF and other countries are presented. The structure of external borrowings and grants received in Ukraine since the beginning of the full-scale invasion for each month is analyzed. The prohibition of financing military expenditures in Ukraine at the expense of funds raised from international partners is substantiated. The results of the analysis of the placement of military bonds in Ukraine in 2022 by the structure of investors (legal entities, individuals, non-residents), by type of currency (UAH, USD, EUR) and by placement of bonds on the stock market (primary, secondary market) are presented. The similarities and differences between bank deposits and military bonds are characterized. The advantages and disadvantages of purchasing military bonds for legal entities and individuals are presented. It is proved that thanks to the assistance of international partners, as well as the attraction of funds from the sale of military bonds (both directly purchased by the National Bank and placed at auctions), the public finance system of Ukraine has withstood a huge economic shock.

Ways of Reforming the System of Public Finance in Poland as an Implication of the Effects of the Covid-19 Epidemic. Financial and Economic Approach

Public finance management has a very global nature. Here decisions are made that determine everything related to collecting and allocating public means. However, the public finance system need to realize that this level is also highly entangled politically, with political transformations accompanying changes of governments and cooperating party coalitions. This accounts for the fact that some general recommendations are formed, specifying the ways of managing public means. The aim of the article is to identify ways to rationalize the reform of the public finance system in Poland. Induction was used as the main research method. It consists in drawing general conclusions or establishing regularities based on the analysis of empirically established phenomena and processes. The results of the presented content are proposals to optimize financing and management of the public sector in Poland. The main conclusion from the analyzes carried out assumes that the structure of public expenditure in Poland is characterized with high share of expenditure on social care, especially on allowances related to gaining and allowances for the family of a deceased person. Relatively high public expenditure is also allocated to education, mostly on higher education, and national defense. At the other end of the scale, categories which receive relatively little financing in Poland include: healthcare, with particularly low level of investment expenditure, and general state activity (public administration and interests on public debt).

SPECIFIC FORMS OF SPENDING AND SPENDING OF BUDGET FUNDS

One of the basic processes taking place in the system of public finances is budget spending. Public spending is the main instrument for implementing the allocative function of public finance. When making expenditures, it is also necessary to take into account the methods and means to achieve the public objectives adopted for implementation. It should be added that in order to comply with the requirements of the Law on Public Finance, budget expenditures should be made in a manner that allows timely implementation of tasks, as well as in the amounts and deadlines resulting from the commitments made.

The transparency as a sustainability tool according to the Emmanuel Lévinas ethics of alterity

Based on an analysis of the theory of ethics of alterity enshrined by Emmanuel Lévinas, this study identifies some challenges for the transparency system of public finances in Brazil. With the ambit of subsidizing the analysis, the work lists the Sustainable Development Goals approved by the United Nations, as well as the relevance of the principle of transparency as a sustainability mechanism. It's established the primary idea of sustainability to support the entire study and, as per such premises, it's promoted an appraisal of the most relevant points of Lévinas' theory on overcoming the purely ontological standard for the perspective of alterity ethics. Ultimately, the work points out aspects of Lévinas' theory that could positively influence the improvement of the monitoring system for public resources management.

Stimulační možnosti státu při financování neziskového sektoru daňovými a dotačními nástroji

The mission of non-business entities is to provide publicly beneficial services. The possibilities of financial support of these entities originate from the system of public finances (subsidies), monetary non-public sources (donations), own resources, and indirect support. All the above-mentioned financial supplies belong to basic streams that can furnish non-profit organizations. In some countries the financial sources are broadened by tax rebates. Taxpayers redirect a share of paid income tax to a selected organization that is not business-based. A State is able to respond to these situations, for instance it can expand or narrow donations either in general or to certain entities. The overall consideration on the effectiveness of the use of individual monetary instruments might differ from the point of view of a State as well as from non-profit organizations.

Fiscal Federalism and the COVID-19 Crisis: Theoretical Aspects and Poland’s Experience

Abstract The article analyzes the specifics of the COVID-19 crisis and its impact on the public finance system, taking into account the key problems of the theory of fiscal federalism. The purpose of this article is to examine the impact of the pandemic crisis on the fiscal relations taking place between different levels of public authority (intergovernmental relations – IGR), considered in the context of the decentralization of the public finance system and the associated distribution of public functions and resources. The article refers to the model features of these relationships, as defined in the theory of fiscal federalism. It also examined the responses of European countries to the negative effects of the COVID-19 crisis, taken within the framework of the IGR, in order to limit the negative effects of the pandemic at different stages. An attempt was also made to answer the question of how the current pandemic crisis may change the multilevel governance (MLG) patterns set forth in the doctrine. The Polish public finance system was used as an example for detailed analysis in this regard.

The Impact of the COVID-19 Pandemic on Public Finances of Spain and Poland in the Period 2020–2021: Historic and Economic Perspective

Abstract The conclusion emerging from the analysis on the impact of the COVID-19 pandemic on public finances in Spain and in Poland in the years 2020–2021 shows that the effects should be considered in the short-term and long-term perspectives. The short-term perspective is featured by deterioration of the budget condition and the public debt ratio of both countries in the first year of the pandemic, and an improvement of the situation in 2021. The effects of the pandemic for public finances were far more severe in Spain, which – viewed objectively – resulted from the fact that financing of the support programmes was to a larger extent based on funds from the state budget. In Poland the impact of these expenditures on the budget was relatively insignificant since the majority of the outlays were taken outside of the state budget, and even out of the sphere of public finances. As a consequence, the budget deficit remained at a moderate level and the debt of the public sector in relation to GDP was half that of Spain. Despite the fact that the condition of public finances was markedly worse there after two years of combating COVID-19, it was decisively more transparent. Admittedly, the model introduced in Poland ensured peace in the system of public finances on the formal side, but it meant future costs that were unavoidable and difficult to assess.

ფასიანი ქაღალდების ბაზრის რეგულირების საკითხისათვის

Financial market is institutionally represented by the financial system. The segments of the decentralized financial system correspond to the sectors of the financial market. Financial relations are formed outside the financial market - in the form of a public financial system. The structure of the decentralized financial system is the relationship between the banking sector and liquid securities markets. The financial structure as a source of ways and mechanisms of economic development is the subject of discussions. In recent years, there has been an increase in the convergence of sectors of the financial system. The financial structure continues to transform. The principles of regulation are the main basic on which the practical actions of the state to regulate the securities market should be based. In contrast to state regulation of the market as a whole, that is, regulation of macroeconomic processes, regulation of the securities market is predominantly administrative in nature. The article expresses an opinion on the expediency of restoring the fundamental entry in the Law of Georgia “On the Securities Market”, according to which trading in government securities is allowed only on the stock exchange; The need to protect the interests of minority investors, greater transparency of information about issuers, regulated participants, large investors is also emphasized. The market regulation system is formed under the influence of problems that accumulate and require solutions. The regulation of the securities market by the state is explained by the role played by this market and the desire to increase the reliability of the market and the level of confidence on the part of all its participants. Regulation of the stock market by the state will be supplemented by regulation by self-regulatory participants. Public regulation (regulation through public opinion) is also very important. The reaction of the population to any action on the securities market is the primary reason for initiating this or that regulatory action on the part of the state or market professionals. The development of the securities market in Georgia will be facilitated by a deeper discussion of the mentioned market problems and ways to overcome them. The article highlights the modern trend of creating stock groups in the securities market; The impact of the Covid pandemic on the stock markets is shown; The different situation in the world is analyzed in terms of creating a system of financial market regulation. Currently, the banking system is the dominant sector of the financial market in Georgia, which has been determined by the policy of the National Bank of Georgia for a long period of time. It is no so important which body should play the role of a regulator - the NSC or the National Bank - the determining factors are the will of the (financial) authorities, the methodology of supervision and the qualifications of the staff. Keywords: securities market, principles of regulation, Regulatory system, IOSCO. JEL Codes: L26, L32, M14

PUBLIC PROCUREMENT EFFICIENCY IN THE SLOVAK REPUBLIC: NUTS 3 LEVEL

At present, public procurement processes and their efficiency represent one of the key determinants of the public finance system. The article’s main aim is to identify the impact of the number of bids, type of contract, use of EU funds, e-auction, quality criteria and the presence of a subcontractor in achieving the public procurement savings with emphasis on NUTS 3 level in Slovakia. There were analysed 957 contracts during the period 2016 – 2020. Robust estimation, which uses the WLS method, was applied to quantify the impact of determinants of public procurement efficiency on a level of savings. The results confirmed that an increase in the number of bids also increases the level of savings by 5 percentage points. The savings are higher by 6.6 percentage points if the contract is not funded by EU funds in comparison to contracts funded by EU funds. Also, the savings are higher by 7.4 percentage points when e-auction was not used. Once, the contract does not allow the subcontractor relationships, the savings are higher by 11.6 percentage points. If the quality criterion is not applied in the contract, then the savings are higher by 10.7 percentage points. The analysis confirmed statistically significant differences between individual regions in Slovakia. The most significant difference is evident between the Košice Region and the Bratislava Region, while the Bratislava Region achieved savings higher by more than 20 percentage points. Similarly, the Prešov Region achieved higher savings by more than 19 percentage points compared to the Košice Region.

Gentrification and the Subsidizing City

In this excerpt from the third chapter of Red Hot City: Housing, Race, and Exclusion in Twenty-First Century Atlanta, (Berkeley: University of California Press, 2022), author Dan Immergluck examines how a dysfunctional public finance system has exacerbated inequality in Atlanta.

Osmanlı Maliye Sisteminde Hınzır Vergisi

Bu çalışma Osmanlı maliyesinde uygulanmış olan hınzır vergisinin tahsil edilmesinin dayanakları ve verginin uygulanması esnasında tecrübe edilen olayları arşiv belgeleri vasıtasıyla incelemektedir. Hınzırın beslenmesi, ticaretinin yapılması ve tüketilmesi Müslümanlara yasak olmasına karşın, Osmanlı idaresi altında gayrimüslimlerin de yaşamasından ötürü gayrimüslimler tarafından beslenen ve ticareti yapılan hınzırlar üzerinden vergi alınmıştır. Ayrıca literatürde yaygın olarak bilinen hınzır vergisine ilaveten, Osmanlı maliye sisteminde hınzır üzerinden örneğin resm-i bojik gibi farklı vergiler de alınmıştır. Osmanlı tarihi açısından hınzır vergisi, genel itibariyle sembolik bir anlam taşımıştır. Ancak 19. yüzyılın sonlarına doğru, Osmanlı Devleti’nin içinde bulunduğu zorlu iktisadi koşullardan ötürü hınzır vergisi, bütçe açığını kısmen de olsa kapatmak maksadıyla bir gelir kaynağı olarak görülmüştür.

Health Expenditure, Child Mortality and Economic Growth in Nigeria

Health expenditure, child mortality and economic growth in Nigeria was examined using time series data covering the 1980 – 2020 sample periods. The Ordinary Least Square (OLS) technique was employed in analyzing the data. Empirical results showed a negative and insignificant impact of government health expenditure on under-five child mortality. It was also found that government capital expenditure had a negative and insignificant impact on under-five mortality, while government recurrent expenditure had a negative and significant impact on under-five mortality. Gross fixed capital formation had a positive and significant impact on under-five child mortality. It was also found that child mortality, government capital expenditure and domestic investment had a positive and significant impact on economic growth, while inflation had a negative and significant impact on economic growth. We recommend an increase in the yearly budgetary allocation to the health sector. However, the key to good outcomes is dependent not on the only mere increase in budgetary allocation but rather on implementing a public finance system that is good enough to extend and possibly link particular expenditure and revenue decisions and ensure appropriate usage of the allocated fund as transparently as possible.

Пандемия COVID-19 как фактор наращивания государственного долга. Опыт Казахстана в контексте мировой ситуации

One of the main effects of the COVID-19 pandemic is a significant aggravation of the debt burden in most countries of the world, due to increased costs to support the economies. In Kazakhstan, similar problems also caused a significant increase in the volume of public debt and expenses for its servicing, while due to the specifics of the country’s economic model, the channels of influence of the pandemic on the debt sector were more numerous because of the impact of external shocks. The growth of government debt and the debt servicing cost during the pandemic years was affected by such factors as the growth of budget’s expenditures to support the economy; a drop in revenues due to lower oil prices; the devaluation of the tenge and growth of the cost of servicing external debt; increase of interest rates in the domestic debt market. A comparison of the parameters of public debt increase and loss of economic growth based on the ratio of these two indicators is proposed as a generalized indicator of the effectiveness of debt buildup during the pandemic. This approach showed that the debt increase in Kazakhstan was quite effective. Nevertheless, the effects of the fight against the pandemic had a serious negative impact on Kazakhstan’s public finance system, and in the debt sphere the main problem now is the escalation of debt servicing costs, which will be a significant burden on the budget process, at least for the next few years.

Transparent Budget in the System of Public Administration

One of the main effects of the COVID-19 pandemic is a significant aggravation of the debt burden in most countries of the world, due to increased costs to support the economies. In Kazakhstan, similar problems also caused a significant increase in the volume of public debt and expenses for its servicing, while due to the specifics of the country’s economic model, the channels of influence of the pandemic on the debt sector were more numerous because of the impact of external shocks. The growth of government debt and the debt servicing cost during the pandemic years was affected by such factors as the growth of budget’s expenditures to support the economy; a drop in revenues due to lower oil prices; the devaluation of the tenge and growth of the cost of servicing external debt; increase of interest rates in the domestic debt market. A comparison of the parameters of public debt increase and loss of economic growth based on the ratio of these two indicators is proposed as a generalized indicator of the effectiveness of debt buildup during the pandemic. This approach showed that the debt increase in Kazakhstan was quite effective. Nevertheless, the effects of the fight against the pandemic had a serious negative impact on Kazakhstan’s public finance system, and in the debt sphere the main problem now is the escalation of debt servicing costs, which will be a significant burden on the budget process, at least for the next few years.

Fiscal instruments of impact on the economic development of countries

Іntroduction. A common measure to combat the crisis is the provision of targeted tax benefits for businesses, a temporary reduction in the tax burden on wages. However, excessive redistri­bution of GDP through the public finance system can hold back economic growth. Problem. It is important, depending on the socio-economic model and institutional features, to find the optimal configuration of fiscal policy to increase business activity, increase endogenous human potential. The aim of the article is to assess the impact of fiscal instruments on economic development and substantiate proposals to increase the effectiveness of fiscal policy. Methods. In the process of research the system approach, methods of analysis and synthesis, scientific abstraction are used. Economic and mathematical methods have also been used to quantify the impact of fiscal indicators on economic growth. Results. The impact of tax burden, public expenditures, fiscal deficit on economic growth in 23 European countries during 2012–2021 has been assessed. The structure of taxation of the European Union member states has been studied. The peculiarities of the implementation of fiscal policy in the conditions of the COVID-19 pandemic are determined. Measures to increase the effectiveness of state fiscal policy in the medium term are justified. Conclusions. Fiscal policy has a significant impact on the processes of economic and social development. In the context of the COVID-19 recession, EU countries actively used fiscal incentives to support the economy and household incomes. These measures simultaneously included increased expenditures and reduced taxes with the provision of targeted tax benefits. Over the last 10 years, the relationship between the main fiscal indicators for the 23 EU member states has been negatively correlated with economic growth indicators. This necessitates a gradual reduction in the share of public expenditure in GDP, the formation and implementation of a balanced budget that ensures macroeconomic stability. An important factor in ensuring economic development is the structure of taxation.

PHYSIOLOGICAL AND PATHOLOGICAL ASPECTS OF THE AGING PROCESS

Demographic changes in the world have begun to raise concerns among experts that health systems, pension funds, as well as health insurance companies and the public funding system will be affected in the long run, changes that will be severely affected by the rapid growth of population. The extent of older people's needs is growing and includes environmental, psychological, social, educational and financial functional confluences as well as physiological and structural problems. The elderly challenge the health care systems due to multiple levels of their needs. In general, medical problems are the result of poor nutrition, deviation of physiological constants, disorders in regulating the inflammatory reaction, walk disorder, immobility, confusion, syncope, sleep disorders. As a result, even the road to the pharmacy can be a torment. The physiological changes that occur as we age are undeniable. The most common visible changes are related to greying hair, changes in the perception of the sense organs, changes in the appearance of the skin, muscle tone, etc. Loss of vision may be a barometer of the onset of aging in somatically healthy patients

The role of clinical reminder system to drug prescribing on patients of the National Health Insurance with ischemic stroke

Since 2014 Indonesia has entered the era of universal health coverage (UHC) and public health financing system managed by the Social Security Organizing Agency Law/SSOAL (Badan Penyelenggara Jaminan Sosial/BPJS) . In this system, a national formulary was used as the basis for prescribing drugs by clinicians. One effort for quality and cost control in UHC was to develop a clinical reminder system (CRS) to help prescriber set treatment options in accordance with the national formulary. The aim of this study was to measure the role of CRS to the compatibility of drug prescribing in patients with ischemic stroke in Bethesda Hospital Yogyakarta, Indonesia. This study was carried out using quasi-experimental with pre-test and post-test design. The subjects of this study were outpatient ischemic stroke and the National Health Insurance (NHI) participant, age >18 years and had complete medication data. Prescribing data were compared between stroke patients treated at the hospital before and after implementation of CRS. The study was performed in 200 National Health Insurance (NHI) scheme outpatients with ischemic stroke. The groups consisted of 100 patients without CRS and 100 patients with CRS. The basic characteristics of both groups were similar. The results showed that after implementation of CRS, a significant improvement in the compliance of the neurologist prescribing medicine used to be available only in national formulary (RR: 1.02; 95% CI=1.00-1.04; p=0.015). Among others the most significant improvement was the prescription of antidyslipidemic using HMG-CoA medicine available in formulary. In conclusion, CRS can improve the compliance of prescribing with national formulary in stroke ischemic patients.

Fiscal Decentralization, Government Behavior, and Environmental Pollution: Evidence From China

Environmental protection is a basic public service that the government must guarantee and is closely related to public health. An important driver of environmental pollution in China is the local government’s pursuit of a rapid economic development while ignoring environmental protection under the Chinese-style fiscal decentralization system. On the basis of the principal–agent theory between the central and local governments, this study analyzes the environmental deterioration caused by the distortion of local government behavior under fiscal decentralization. In addition, using China’s prefecture-level city data from 2014 to 2018, this study empirically estimates the impact of fiscal decentralization on environmental pollution. SO2 emissions and PM2.5 concentrations are used to measure the degree of environmental pollution. Results show that Chinese-style fiscal decentralization exacerbates environmental pollution and that the impact of fiscal decentralization on environmental pollution differs in regions with varying levels of economic development and cultural penetration. Moreover, fiscal decentralization does not significantly impact environmental pollution in eastern China and in those areas influenced by Confucian culture yet aggravates the environmental pollution in central and western China and in those areas that are not affected by Confucian culture. These results offer important policy implications. Clearly dividing the power and financial power between the central and local governments, establishing an environmental governance system compatible with economic incentives, and building an environmental public finance system can alleviate the impact of Chinese-style fiscal decentralization on environmental pollution.