Budget planning with the development of the budget process in Ukraine

  • Received March 30, 2020;
    Accepted June 10, 2020;
    Published June 17, 2020
  • Author(s)
    Kateryna Romenska
    ORCID Researcher ID ,
    Victor Chentsov
    ORCID Researcher ID ,
    Oleksandr Rozhko
    ORCID , Vitaliy Uspalenko
  • DOI
    http://dx.doi.org/10.21511/ppm.18(2).2020.21
  • Article Info
    Volume 18 2020, Issue #2, pp. 246-260
  • TO CITE АНОТАЦІЯ
  • Cited by
    6 articles
  • 1149 Views
  • 286 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The transition to future-oriented medium-term budget planning has been an important innovation in the budget process of Ukraine. Since then, the main budget indicators are calculated for the next three years with a forecast that allows for systemic reforms in several areas. This paper aims to identify problems of implementing budget planning for generating an envisaged and balanced budget in conjunction with the priorities of the state. The current status of budget planning and budget performance is analyzed by reviewing budget legislation, budget reporting, information-analytical and presentation data of state authorities and local governments, the experience of developed countries that have achieved some success in medium-term budget planning in terms of income and spending. The paper also reveals the features and advantages of medium-term budget planning based on the result; explores the approaches to transparent, effective, and high-quality use of budget funds with a limited potential of the state to increase tax revenues. The implementation of budget planning is due to the need for further development of the budget process in Ukraine towards increasing predictability, transparency, stabilizing the budget in the medium term, and solving important problems of efficient and high-quality use of budget funds for economic and social recovery.

view full abstract hide full abstract
    • Figure 1. Execution of revenue and expenditure parts of budgets, %
    • Figure 2. The share of budget deficit (-) and surplus (+) in GDP, %
    • Figure 3. The number and the amounts of warnings for managers and recipients of state and local budgets, identified by the State Treasury Service of Ukraine
    • Figure 4. Number of warnings from the State Treasury Service of Ukraine’s bodies to managers and recipients of state and local budgets about improper fulfillment of budget legislation, number of cases
    • Figure 5. Stakeholders in improving the efficiency and effectiveness of the use of budget funds
    • Figure 6. The amount of the State Budget of Ukraine’s expenditures influenced by tax revenues and the largest expenditure items of the general budget fund, UAH bn
    • Table 1. The list of alternative areas of budget financing and expected results of the efficient use of budget funds
    • Conceptualization
      Kateryna Romenska, Victor Chentsov, Oleksandr Rozhko, Vitaliy Uspalenko
    • Data curation
      Kateryna Romenska
    • Formal Analysis
      Kateryna Romenska
    • Project administration
      Kateryna Romenska
    • Writing – original draft
      Kateryna Romenska
    • Methodology
      Victor Chentsov, Oleksandr Rozhko, Vitaliy Uspalenko
    • Resources
      Victor Chentsov, Vitaliy Uspalenko
    • Supervision
      Victor Chentsov, Oleksandr Rozhko
    • Writing – review & editing
      Victor Chentsov, Oleksandr Rozhko, Vitaliy Uspalenko
    • Investigation
      Oleksandr Rozhko, Vitaliy Uspalenko
    • Visualization
      Oleksandr Rozhko, Vitaliy Uspalenko
Related Articles

  • Environmental responsibility mechanism development in the public sector of the economy

    Inna MakarenkoORCID Researcher ID, Diana BychenkoORCID , Serhiy MakarenkoORCID , Gunay Qasimova doi: http://dx.doi.org/10.21511/ee.09(3).2018.04
    Environmental Economics Volume 9, 2018         Issue #3         pp. 28-41 Views: 1684 Downloads: 182 TO CITE АНОТАЦІЯ

    Environmental responsibility mechanism in the public sector of the economy has an important sense in UN Sustainability Development Goals achievement, as well as in ensuring the competitiveness of the state-owned companies and the state as a whole. Sustainability concept, concept of “smart cities and smart communities” and the implementation of public administration reform, the necessity to increase the transparency of state-owned companies and the responsibility of municipalities to communities determine the reasonability and urgency in environmental responsibility mechanism development. Systematization and comparative analysis of world and national experience of environmental responsibility mechanism development in the public sector of the economy were made. The author’s approach to the structuring of the mechanism of environmental responsibility in the public sector was developed. Public policy peculiarities implementation in the field of environmental responsibility were investigated considering the levels of regulation of such liability: in state-owned companies as models for other sectors of the economy; in public authorities and municipalities.

  • Factors affecting accrual accounting reform and transparency of performance in the public sector in Vietnam

    Phuong-Nguyen Thi ThanhORCID , Hai Phan ThanhORCID Researcher ID, Tung-Nguyen Thanh , Tien-Vo Thi Thuy doi: http://dx.doi.org/10.21511/ppm.18(2).2020.16
    Problems and Perspectives in Management Volume 18, 2020         Issue #2         pp. 180-193 Views: 1637 Downloads: 549 TO CITE АНОТАЦІЯ

    This study was conducted to determine the factors and their influence on accrual accounting reform in the public sector in Vietnam. Combining qualitative and quantitative research methods based on empirical surveys of 268 accountants, controllers, and auditors working in state agencies such as the Department of Finance, state treasuries and agencies receiving revenues from the state budget in 2019. This study shows that six factors influence the reform of the accounting system in the public sector in Vietnam to accrual-based: accounting staff – especially their expertise, competence, and work experience; training and support of the consulting experts; costs of the accounting reform; level of information technology application; funding and assistance from international organizations; legal environment.
    At the same time, the accrual-based accounting reform will have a positive impact on improving the transparency and efficiency of public sector operations in Vietnam. Among the factors affecting accounting reform, the legal environment factor is the most influential determinant, followed by the contingent of accountants. The study’s limitation is that the new experimental investigation is only conducted with a small sample size and in a short period. However, the research results are also a useful reference for those who are interested in the context that Vietnam is preparing to have strong reforms in accounting in the public sector in the coming time.

  • Public companies’ transparency in Ukraine: key regulatory requirements

    Inna MakarenkoORCID Researcher ID, Yulia SerpeninovaORCID doi: http://dx.doi.org/10.21511/pmf.06(1).2017.01
    Public and Municipal Finance Volume 6, 2017         Issue #1         pp. 8-14 Views: 1405 Downloads: 202 TO CITE АНОТАЦІЯ

    Public companies as strategically important and economically powerful Ukrainian companies should be classified as public interest entities in the context of European integration. Based on the research methodology of the Index of public companies’ transparency of the Center for CSR Development and research of largest public and private companies’ transparency in Ukraine, conducted by TI, the authors concluded about critically low level of transparency of public companies in the disclosure of audited financial reporting, as well as non-financial reporting.

    This research may contribute to the existing literature in regard to identifying key areas of improving transparency of public companies in Ukraine on the basis of amendments to the existing order of reporting and additional disclosure of non-financial information and carrying out the statutory audit, taking into account European experience.

    Among the issues that require further study, the authors should name the relationship between the level of transparency of public companies, their financial efficiency and investment attractiveness. Among the promising areas of research, the extension of the study on transparency of public interest entities after the publication by the European companies of the first statements prepared in accordance with Directive 2014/95/EU is worth noting.

    Limitations of the research carried out concerned the size of the sample Ukrainian public companies analyzed.

Download Preview
Close
Problems and Perspectives in Management
Problems and Perspectives in Management