Budget System Research Articles

Comparative legal analysis of income strategies in Ukraine and foreign countries

The article examines the state of regulatory and legal support for the transition of the domestic budget system to European standards of the country’s income generation. Scientific understanding of the formation of the national policy for the formation of state revenues and the implementation of a comparative legal analysis of the existing international and national experience in this area are determined to be necessary. The positions of the formed scientific doctrine regarding the economic and legal basis for the creation of a national strategy of budget revenues are analyzed and it is summarized that the specified process in the conditions of modern global challenges is not sufficiently widely reflected in modern scientific intelligence, which prompts the author team to study individual features of the international legal regulation of the strategy for the formation of budget revenues income An analysis of the National Revenue Strategy until 2030 was carried out and its main prospects were determined: increasing the level of public trust in public administration bodies, increasing the fiscal capacity of Ukraine, adapting tax and customs legislation to EU standards, forming economic incentives for the post-war recovery of our state, etc. It was determined that the basis of income formation in the EU is ensuring the lawful behavior of subjects of financial relations. Prevention of such offenses as fraud in relation to revenues, expenditures and assets of the general budget of the EU, financial transactions related to borrowing and lending. Attention is drawn to the experience of forming a national income strategy in individual EU member states (Germany, France) and Japan. It has been established that with effective legal regulation and an effective implementation mechanism, countries have achieved a high level of tax and budget transparency and minimization of offenses. A perspective for Ukraine, along with the implementation of a number of innovations in the formation and implementation of the budget strategy, is the experience of close cooperation between the scientific community and public administration entities, where an important additional role in the development and implementation of the revenue strategy is played by scientific research institutes, expert councils, scientists who form forecasts of multifaceted development of the state. It is proposed to implement the legislative consolidation in Ukraine of the need for cooperation with research advisory and consulting organizations and scientists-specialists in the formation and implementation of the national budget strategy.

Консенсус в налоговых отношениях как фактор обеспечения бюджетной устойчивости

Taxes are one of the main sources of income for the state, therefore, effective management of tax relations is of great importance for achieving financial stability and economic development. The author tested the tax system using the «black box» and «white box» method, which made it possible to identify external parameters for the budget system and internal parameters for the development of the tax system. It is proved that the fiscal function of taxes has become more effective due to the automation of taxation processes and interaction.

Comparative Analysis of the Financial and Distribution Policy of the Largest Non-ferrous Metallurgy Corporations in the BRICS Space

Non-ferrous metallurgy is of crucial importance in the life of society. The industry’s products are present in household items (household appliances, plumbing, electronics, tableware), construction, automobile and machine tool construction, batteries, etc. With the existing wide range of non-ferrous metals applications, large companies, with a high degree of vertical integration and business effi ciency, have large volumes of revenue, are able to meet the needs of consumers in a wide variety of products, and also have the opportunity to fi ll the budget system of their countries and territories where they are based. The article focuses on a comparative analysis of the fi nancial results of the largest non-ferrous metallurgy corporations in the BRICS space, namely PJSC MMC Norilsk Nickel (Russia) and Vale S.A. (Brazil), which have a total revenue of about $72.4 billion by 2021. The purpose of the study is to identify the features of the fi nancial and distribution policy of the largest metallurgical corporations in the BRICS space. The results of the study for 2009–2023 showed an increase in average net profi t by 71 % (up to 5.1 billion dollars) for the Russian company and by 1 % (up to 10.4 billion dollars) for the Brazilian company. The average profit tax rate for companies decreased by 4.9 and 9 percentage points to 21.7 and 16.9 %, respectively. The increase in dividend payments amounted to 97 and 15 % to 3.2 and 5.8 billion dollars. accordingly, at the same time, the share of net profi t allocated by companies to dividends has increased: at Norilsk Nickel — by 8.4 percentage points to 62.5 %, at Vale S.A. — by 6.5 percentage points to 55.9 %. The information base of the study was the official consolidated fi nancial statements of PJSC MMC Norilsk Nickel and Vale S.A., domestic and foreign industry literature, data from information and analytical and news agencies, information on the exchange rates of Russia and Brazil.

Этапы становления бюджетной системы России

The article examines the key stages of the development of the Russian budget system. It is noted that before the revolution there was a two-tier budget system, which later underwent drastic changes. The author analyzes the role of tax reform in the formation of revenues of territorial budgets. Special attention is paid to the impact of economic and political changes on the country’s budget. In conclusion, it is proposed to adapt the budget system to modern challenges in order to ensure the well-being of the population and the sustainable development of the state.

The Impact of The Government Financial Information Management System in Improving The Quality of Internal Auditing in Government Departments: A Case Study of The Maternity and Children’s Hospital In Buraydah

The study aimed to identify the impact of the government financial information management system in improving the quality of internal auditing in government departments through a case study of its application in the Maternity and Children’s Hospital in Buraydah. The study used the descriptive analysis approach, and the study population represented workers in financial management in the Maternity and Children’s Hospital in Buraydah and through the sampling method. Simple randomization, the sample number was 87 individuals, and the study concluded that there was a very high level of application of the financial information management system in its dimensions (application of the public sector budget system, application of the payments and receipts system, application of the procurement system, application of the cash management system), as well as a very high level of audit quality. Internal auditing in its dimensions (efficiency and professional care, management of internal audit activities, training, planning and implementation of the audit process, delivery of results) in the maternity and children’s hospital in Buraidah. It was also shown that there was a statistically significant effect of applying the financial information management system in its dimensions in achieving the quality of internal audit in the maternity and children’s hospital in Buraidah when Significance level (a<0.05) Keywords: financial information management system – internal audit quality – government departments.

Addressing Regional Disparities and Enhancing Efficiency in Kazakhstan’s Budget System

Addressing Regional Disparities and Enhancing Efficiency in Kazakhstan’s Budget System

Pendampingan Pengganggaran dan Pengawasan Keuangan pada UMKM dan NGO Binaan

Budgeting and oversight are essential for ensuring the sustainability and effectiveness of non-profit organizations (NGOs). This process includes thorough financial planning, strategic resource allocation, and careful monitoring to guarantee that funds are used to support the organization’s mission. In the budgeting process, the involvement of various stakeholders—such as the board of directors, executive directors, financial managers, and program heads—is crucial for creating a realistic budget that meets the organization’s needs. Additionally, effective budget oversight is vital for ensuring transparency, accountability, and efficiency, which are core values in NGO management. A practical approach to budgeting involves identifying strategic priorities, projecting revenues, and evaluating expenditures in relation to the organization’s programs and operations. Good budget oversight includes monitoring progress, analyzing the discrepancies between planned and actual results, and implementing corrective measures when necessary. With effective budget management, NGOs can enhance their credibility in the eyes of donors, ensure the smooth implementation of programs, and reduce financial risks that could impede the achievement of their goals. This study highlights the significance of a transparent and accountable budgeting and oversight system in promoting the sustainability and effectiveness of NGOs. In conclusion, an integrated and data-driven approach to budget preparation and monitoring strengthens financial governance and enhances the social impact of the programs implemented.

THE INFLUENCE OF THE WAR ON THE FORMATION OF THE BUDGETARY SYSTEM IN UKRAINE

The full-scale war in Ukraine has led to fundamental changes in the functioning of the budget system. This article analyzes the consequences of the military actions and their impact on the formation of the budget system in Ukraine, in particular: the growth of defense and security expenditures, the increase in the deficit, and the attraction of significant external financial assistance. The author analyzes the problems that Ukraine faces during the war in filling the revenue side of the budget and proposes solutions, including tax system reform, expenditure optimization, and strengthening financial discipline.

Participants of the budget process at the level of local budgets: system, powers and challenges of martial law

This article examines the powers and functions of key participants in the budgetary process at the local budget level in Ukraine. The activities of local self-government bodies, executive authorities, as well as territorial offices of the State Treasury Service, the State Tax Service, and the State Audit Service are analyzed. Particular attention is paid to their role in ensuring the efficient functioning of the budgetary system under martial law. It has been determined that coordination between the participants of the budget process, as well as ensuring financial transparency and accountability, is critical to maintaining the stability of local budgets, especially in light of the current challenges posed by armed aggression. The article also highlights the issues faced by the local budget management system during wartime, such as the need for rapid legislative adjustments, resource redistribution to support defense capabilities, and infrastructure restoration. The effectiveness of budget processes and the legal framework governing their implementation have been assessed. The analysis demonstrated that adapting the budget process to new realities is one of the key factors in maintaining the resilience of the financial system at the local level. Recommendations are provided for further improvement of legal regulation and financial control mechanisms to enhance the effectiveness of managing local budgets in times of crisis. The article contributes significantly to understanding the local budgetary process, particularly regarding the role of government bodies in ensuring the financial support of recovering and development of territorial communities under armed conflict conditions.

Управління бюджетними видатками в умовах війни

Introduction. In conditions of martial law, the role and importance of budget expenditures in solving the problems of a warring country increases. After all, expenditures on the country's defense determine the degree of resistance to the aggressor, the completeness of providing the needs of the Armed Forces of Ukraine in ammunition, modern combat equipment, FPV drones and other technological weapons. Problem Statement. In conditions of martial law, as in peacetime, the key task of the budget system is to increase its efficiency, including through transparency, accountability, promoting innovation and investment attractiveness, sustainability of public finances, etc. This can be achieved by fulfilling a number of important scientific and practical tasks, including optimization of budget expenditures, effective allocation of funds, prioritization of budget programs, investment projects, targeted use, as well as timeliness and completeness of financing in order to achieve the predicted final result. The purpose is an analytical assessment of changes in the management of state budget expenditures during the war and the development of mechanisms for increasing their effectiveness while maintaining financial stability. Methods. General scientific and special methods were used: comparative analysis, synthesis, grouping, description, tabular method, theoretical generalization and abstract-logical. Results. The budget legislation on the management of budget expenditures, which is applied in peacetime and under martial law, was analyzed. The dynamics of the growth of the share of State Budget expenditures and, accordingly, the decrease in the share of local budgets in the overall structure of expenditures of the consolidated budget of Ukraine were highlighted. The dynamics of the consolidated budget were analyzed by functional classification and the priorities of budget expenditures were established in peacetime, as well as during the period of full-scale Russian invasion. The reasons for the emergence of such a permanent phenomenon for the domestic budget system as a budget deficit were indicated. The emergence of a deficit in wartime and the forced need to increase Ukraine's military-industrial potential in order to stop the aggressor are substantiated. A mechanism for improving approaches to managing defense budget expenditures is proposed. Conclusions. It is important to effectively manage budget expenditures both in peacetime and in martial law to meet urgent public needs. The priorities of budget expenditures in peacetime are significantly different from the needs of a warring country: these now include ensuring the financing of the Armed Forces of Ukraine and the security sector in general, as well as maintaining a balance between financing military needs and social protection of the population. The relevance of the problem of finding sources of covering the budget deficit has increased, since the war has not only exacerbated chronic problems, but also brought new challenges associated with external shocks and threats, in particular, the lack of access to external financial markets. In such a situation, the burden on the budget system increases significantly. Currently, the Government of Ukraine has managed to avoid default, so the situation is under control and requires efforts to introduce efficient mechanisms for effective management of budget expenditures, which will have a positive impact on the recovery of public finances and guarantee long-term macro-financial stability.

The COSO ERM Implementation Perspective Analysis on Manufacturing Company: Case Study PT Alcomex Indo

Internal control implementation of PT Alcomex Indo, a manufacturing company focused on aluminum extrusion based on COSO ERM perspective. This research conclude that the internal control of objective settings in the expenditure cycle is not fully implemented and stated that there is no budgeting system which resulted in the lack of performance evaluation in the expenditure cycle.

Russia’s budget system in 2024. preliminary results and emerging trends

The revenues of all components of the Russian budget system showed positive growth rates in January-September 2024. Revenues to the federal budget have increased most significantly, both from oil and gas and non-oil and gas revenues. The pronounced dependence of federal budget revenues on world oil prices remains, provoking the budget execution risks. The growth rate of revenues of the consolidated (enlarged) budget of the country lagged behind the growth of federal budget revenues, but outpaced the rate of inflation. The excess of last year’s values in real terms occurred both in terms of tax revenues, social insurance premiums and other taxes and fees. Compared to last year, the receipts of practically all taxes have increased. The exception is budget revenues from corporate income tax, which have decreased even by nominal values. Regional budget revenues increased only in nominal terms. Here, against the background of nominal growth of own income, there was an absolute reduction in intergovernmantal transfers. The drop in regional budget revenues from corporate income tax in many regions of the Russian Federation was not offset by an increase in personal income tax revenues. The dynamics of expenditures of the components of the budget system in the first 9 months of the year also outstripped inflation.

DEFENCE RESOURCE MANAGEMENT CHALLENGES

This paper explores the major factors that hinder the resource management process, which is critical to the development of defence institutions. An effective defence resource management (DRM) process enables coordination, synchronization and integration of defence activities; provides resilience in dealing with uncertainties; supports rational decision-making; and enhances future control capacity. This facilitates the translation of short-, mid-, and long-term defence plans into concrete budgets. The authors argue that several factors have a significant negative influence on success of DRM process, such as the absence of a comprehensive strategic policy framework, the lack of data-driven analysis, and the failure of budgeting tools within the planning, programming and budgeting system (PPBS). An effective security and defence policy framework with clear priorities is one of the key prerequisites for DRM, ensuring that resources are directed toward building the capabilities required to achieve national security goals. Ambiguity around the major strategic areas creates essential challenges, as not having a robust future vision is the same as not knowing where to go. Furthermore, a strategic security policy framework sets the priorities not only for defence but also for social, economic, and foreign policies, ensuring that resource allocations align with broader national objectives. Another critical factor hindering success of the defence resource management process is the lack of an organizational capacity to gather, analyze, and strategically exploit an enormous amount of information, which is crucial for rational decision-making, optimal resource allocation, and adaptation within a rapidly changing security environment. In today’s digital age, the challenge for defence planners is not only a shortage of data, but rather the opposite: the ability to manage, evaluate, and analyze vast amounts of data. Finally, the failure to adopt successfully PPBS was an additional factor challenging DRM processes in the defence institutions of post-Soviet legacy countries. This system was considered a fundamental strategic management tool that could improve resource planning processes within these organizations. However, its adoption and implementation faced significant problems that have limited its effectiveness in improving budgeting processes.

APPROACHES TO FINANCING THE SYSTEM OF EDUCATION FOR CHILDREN WITH DISABILITIES

At the modern post-industrial stage of economic development, the transformation of social systems in developed countries is carried out in the direction of individualization of the educational trajectory of each person. In the presented study, significant attention is paid to ensuring of getting education by children with special needs, the percentage of such children tends to increase throughout the world. One of the difficulties in organizing work with special children is collecting information on the characteristics of the required educational environment, according to W. Oates’s decentralization theory, the provision and financing of public goods should be carried out at the level of the budget system that is closest to the consumer, while minimizing territorial differentiation in the availability of services. The purpose of the article is to systematize existing approaches to organizing the financing of the system of obtaining education for children with special educational needs. The conducted analysis of the current regulatory framework from the point of view of the implementation of the practice of financial equalization in the system of budgetary federalism allowed the research to determine the feasibility of centralizing psychological and pedagogical assistance for children with disabilities at the regional level. The analysis of the practice of implementing the reform of budgetary institutions in the framework of the transition to financing of the state and municipal assignment allowed the research to identify the discrepancy between the planned indicators and the actual volume of services; centralization at the regional level can help to redistribute services between territorial divisions. Using the example of the data analysis from the work of the institutions of psychological and medical pedagogical commissions (PMPC) of the city of Chelyabinsk, disproportions in funding sources and the volumes of the municipal assignment were revealed. As a result of the study, proposals are presented for the centralization of services provided by organizations of psychological and pedagogical, medical and social assistance. The transfer of funding for these services to the regional level can help to take into account the specific needs of children with disabilities and reduce the degree of territorial differentiation in the availability of educational services.

Optimizing Cost Efficiency through Cost Control in Construction Projects: A Review

This study explores various methodologies and factors influencing budget performance across different sectors, particularly in construction and public budgeting. Construction projects are inherently complex and prone to cost overruns, making cost control a critical aspect of project management. This study investigates the impact of cost control on cost efficiency in construction projects. A neural network model was utilized to identify key management factors affecting project budget performance, focusing on critical aspects such as project manager experience, team turnover, and budget updates. Several monitoring techniques for cost and performance deviations, including Activity-Based Ratios, were also analyzed, revealing their varying effectiveness. In the public sector, performance-based budgeting systems were discussed, with an emphasis on integrating planning and performance metrics for more informed decision-making. Challenges in implementing such systems were highlighted, particularly regarding political and organizational barriers. In construction, various approaches were examined, including cost estimation frameworks and performance-based budgeting tools. The research underlined the importance of accurate budgeting and cost control measures in both construction projects and public administration, suggesting that strategic adjustments, better forecasting, and active stakeholder participation could improve overall budget performance. This research paper presents a comparative analysis of various process-based cost control models utilized in construction projects. The objective is to evaluate each model’s effectiveness, advantages, and limitations to provide insights for project managers in selecting the most suitable approach for their specific project needs. Key Words: Cost Efficiency, Cost Control, Construction, Projects

Analisis Pengelolaan BLUD pada BPSDMD Provinsi SUMSEL

The implementation of the BLUD Financial Management Pattern (PPK) in the process of formation and implementation still faces a number of obstacles that result in the smooth operation of its operations are not optimal. This obstacle occurs both from the internal and external sides of BLUD. The convenience provided in the BLUD system is due to special demands, namely to improve the quality of service from BLUD. Therefore, the prerequisites for the regional apparatus to implement the Financial Management Pattern of the Regional Public Service Agency (PPK BLUD) must be carried out selectively and objectively. This study uses a descriptive analysis method with a qualitative approach. An approach to research that aims to describe or explain the observed phenomena in detail and depth. The results of this study concluded that Planning and Budgeting, administration and financial reporting of BPSDMD South Sumatra Province have been carried out in accordance with the guidelines for BLUD financial management as stipulated in Permendagri 79 of 2018 concerning BLUD but the budgeting system tends to use the Traditional Budgeting system, not purely combined with the Performance Budgeting System and financial reports have not been published directly or through existing websites so it is recommended to immediately implement the Performance Budgeting System and publish financial reports through the existing website.

Culture, budgeting and planning in the Department of Finance

Abstract This article considers the contribution of the Department of Finance from the late 1950s to the turn of the millennium. It revisits long-standing cultural and institutional issues that former officials and academics raised in the period, particularly focusing on the budgetary system and its weaknesses. It examines the limitations of the department’s foray into economic planning, arguing that its potential was never fully realised. The article argues that plans, rather than budgets, were a far more appropriate mechanism for setting economic policy, and that they could have helped mitigate the influence of party politics. It concludes that planning will become even more paramount in the twenty-first century, as Ireland grapples with major global headwinds.

Recommendations on Raising Operative Efficiency of Budget Funds Use

In the current situation the interest of legislative and executive powers in efficiency of budget funds use becomes more evident. The authors of the article put forward recommendations in such aspects as upgrading organizationmethodological and statutory-legal support, extending informational base and improving accuracy of cash forecast. The most important finding of the research is the author’s model of cash forecast based on real daily data of the Federal Treasury. The experience of developing a specialized information resource for cash forecast gives an opportunity not only to respond quickly to requests of irregular expenses connected with elimination of emergency situation effects, court rulings, etc, but also to accumulate daily information for a number of years, which forms the condition for more accurate forecasts. In the research methods of systemic analysis and forecast were used. To prepare recommendations on raising operative efficiency data on revenues and expenses of budgets in the budget system of Russia in 2020–2024 were used. The principle tools for analyzing data were specialized applications and technical means.

Digitalisasi Sebagai Formulasi Transisi Menuju Transparasi Perpajakan

This research answers the problem formulation of the urgency of tax digitalization as a transition formulation towards tax transparency and determines the various obstacles in implementing tax digitalization as a transition formulation towards tax transparency. Transparency is one component of good governance, including in the field of taxation. In order to realize aspects of transparency, the government issued a tax digitalization policy. The hope is that digitalization of taxation can improve the weaknesses of conventional taxation and be able to formulate a transition or change towards transparent taxation. This sociolegal research uses a qualitative and descriptive approach with the main aim of searching for data on the implementation of tax digitalization as well as at the regional level within the scope of its implementation by employees of the Primary and Middle Tax Offices in the City of Surakarta. The results of the research are the urgency of digitizing taxation as a transition formulation towards tax transparency as a response to electronic and e-Government based government systems as well as increasing ease of tax access. Meanwhile, various obstacles in implementing tax digitalization as a formulation of the transition towards tax transparency include the transition from conventional taxation to digital taxation as well as budget problems and system maintenance.

Predicting the probability of failure in medicinesʼ public procurement

The quality and timeliness of medicinesʼ supply to the healthcare system through public procurement is an urgent task of public policy in all countries of the world, including Russia. Failure to close (failure of tenders, termination of already concluded contracts) procurement procedures in such a socially significant area carries risks for the population, provokes the emergence of hidden transaction costs for the budget system to eliminate the consequences of procurement failures. In their previous works, the authors identified the factors that lead to the failure to close tenders for the purchase of remedies, and initially assessed the consequences of their influence on procurement procedures. The purpose of this article is to present a mathematical model of the probability of non-closure tenders based on the obtained results. To achieve this goal, through processing more than 1 million notifications of public procurement of remedies for 2022–2023, collected from the open sources, the tasks with no methodological solutions were completed. Thus, a set of features accompanying the failure to close procedures for the purchase of remedies was compiled. The composition of identified features was analyzed; their influence on non-closure of the procedure was assessed. A model of the probability of non-closure of the procedure was constructed, and the results were interpreted. Unlike previously published studies, the forecast model was implemented on the ensembles of decision trees using gradient boosting. This made possible to significantly improve the quality of the forecast for each factor affecting the probability of non-closure of the bidding. The results obtained in the article are not only scientifically novel, but can also be used by regulatory and control bodies in public procurement to develop methodological recommendations for customers on establishing optimal conditions for concluding and fulfilling contracts, which will reduce procurement risks and damage to the state budget.