scholarly journals Debt finance as a public phenomenon: conceptual basics and prospects of democratization

2019 ◽  
pp. 35-50
Author(s):  
Olha Kyrylenko ◽  
Andrii Derlytsia
Keyword(s):  
Public Finance ◽  
Public Debt ◽  
Institutional Environment ◽  
Government Debt ◽  
Debt Management ◽  
Budget Process ◽  
Budget Deficits ◽  
The Public ◽  
Debt Finance ◽  
The Individual

Introduction. Issues of budget deficits, public credit and debt form the sphere of debt finance – a model established in a particular country for ensuring the balance of the budget, the organization of government borrowings, the system of public debt management in order to influence the development of the economy and the functioning of public finance. Methods. The methods of abstraction, comparison, institutional analysis and idealization have been used. Results. The study draws attention to the microeconomic fundamentals of debt finance, considering them through the prism of the individual interests. It has been found out that the developed Western countries are characterized by the public nature of debt finances as a result of the evolutionary democratization of public debt – the accessibility of government debt operations to the general public. It is revealed that due to a number of institutional restrictions, the democratization of this sphere in Ukraine has not been fully implemented yet. It is proved that the public debt manifests the same power as pure public goods: the indivisibility in consumption and the impossibility to exclude from the debt burden, which enable its study as public bads. The key features that determine the social nature of debt finance in developed democratic countries are revealed. It is proved that the determinants of debt finance are both economic and political and institutional imbalances, not only in the area of public finance, but also at the level of economic entities. The key components of the institutional environment of the functioning of debt finance are considered: political decision- making mechanisms, procedures of the budget process, the institutional organization of the financial market. It is argued that one of the key shortcomings of the domestic practice of servicing domestic public debt is the insignificant share of debt owned by citizens. Conclusions. The disadvantages and obstacles of democratization of the model of borrowing in Ukraine are studied in the paper. A promising mechanism of financial inclusion of the population in transactions with government debt is proposed.

scholarly journals INSTITUTIONAL TRANSFORMATIONS OF THE PUBLIC FINANCE SYSTEM

2021 ◽  
Vol 2 (37) ◽  
pp. 325-331
Author(s):  
I. Chugunov ◽  
V. Makogon ◽  
Yu. Markuts
Keyword(s):  
Public Finance ◽  
Public Debt ◽  
Institutional Environment ◽  
Jel Classification ◽  
Debt Management ◽  
Financial Resources ◽  
Budget Process ◽  
Finance System ◽  
The Public ◽  
Budget System

Abstract. The article reveals the role of the public finance system in macroeconomic stability, regulation of economic processes, and improving the level and quality of life of the population. The directions of institutional transformations of the public finance system are determined. The authors disclose the provisions on improving the efficiency of public financial resources, improving public debt management tools, developing the institutional environment of public-private partnership, criteria for allocating public financial resources in the unfavorable dynamics of budget revenues. The share of public debt in the GDP of the EU countries is analyzed and estimated. The article proposes provisions to increase the effectiveness of public financial control and audit, improve the system of public forecasting to ensure timely implementation of adequate financial and budgetary measures and respond to the socio-economic situation in the country, strengthening the strategic nature of public financial and budgetary forecasts. It is substantiated that in the conditions of institutional transformations of formation of budgetary indicators, their architectonics should be carried out proceeding from necessity: optimization of expenses of budgets of various levels; acceptance of new expenditure commitments is possible only if the comparative assessment of their effectiveness is higher than the current commitments, taking into account the timing and level of available financial resources for their implementation; continuous analysis and evaluation of expenditure commitments to determine inefficient costs. The article identifies the importance in the current conditions of development of the public finance system of continuous assessment of fiscal risks to ensure the stability and balance of the budget system; ensuring a sufficient level of flexibility of budget expenditures based on the macroeconomic situation in the country; improving the regulatory and methodological support of the budget process. Keywords: public finance, budget system, public debt, fiscal policy, economic growth. JEL Classification Е62, H60, O40 Formulas: 0; fig.: 0; tabl.: 1; bibl.: 10.

scholarly journals Local Government Debt Control Methods by Regional Chambers of Audit

2018 ◽  
Vol 26 (4) ◽  
pp. 51-63
Author(s):  
Mirosław Legutko
Keyword(s):  
Public Finance ◽  
Local Government ◽  
Local Governments ◽  
Government Debt ◽  
Control Methods ◽  
The Public ◽  
Paper Cover ◽  
The Individual ◽  
Reporting Data ◽  
Negative Phenomena

The aim of this paper was to evaluate the system of control over local government debt exercised by the Regional Chambers of Audit (RCA) and to present the conclusions and expectations resulting from this assessment both generated by the RCA and applicable to the RCA within the scope of conducted debt audits. The method applied to assess legal regulations included analysis of legislative documents, i.e. primarily the Constitution, the Public Finance Act of 27 August 2009, Act of 7 October 1992 on Regional Chambers of Audit and the Regulation of the Minister of Finance of 28 December 2011 on the detailed manner of classifying debt titles classified as public debt. The analyses contained in this paper cover the period from 2014, when the Individual Debt Ratio defined in art. 243 of the Public Finance Act came into force, until 2018. The presented data and regulations confirm the correct functioning of the extensive control system in this respect. Every year, the number of negative assessments of local government debts decreases. However, it seems necessary to eliminate negative phenomena, such as: extending debt repayment period, use of unlimited types of debt titles and falsification of reporting data. The elimination of these negative phenomena may be achieved through amendments to the currently binding law regulating obtaining funding by local governments.

PROSPECTS FOR THE DEVELOPMENT OF THE OVDP MARKET IN UKRAINE AS AN ALTERNATIVES TO EXTERNAL BORROWING

2017 ◽  
Author(s):  
Oleksandra Vіvchar ◽  
◽  
Solomiia Papirnyk ◽  
Keyword(s):  
Public Debt ◽  
Bond Market ◽  
Debt Management ◽  
Securities Market ◽  
Government Bond ◽  
Government Bonds ◽  
The Public ◽  
Long Run ◽  
External Borrowing ◽  
Domestic Economies

The article provides an applied analysis of Ukraine's public debt, in particular in the context of the feasibility of optimizing its structure. The comparison of internal and external borrowings is made, the main shortcomings and advantages of each of these ways of mobilization of financial resources are revealed. Given the hypothesis of the need to increase domestic public debt compared to external, special attention is paid to the study of the main financial instrument through which the state raises funds in the domestic market - domestic government bonds of Ukraine. The dynamics of data volumes of debt securities with an emphasis on crisis periods in both the world and domestic economies was also studied. In addition, the structure of domestic government bonds of Ukraine in circulation was considered on the basis of the owner. This made it possible to identify the main players in the domestic government bond market, as well as the motives that motivate them to increase their own portfolio of domestic government bonds of Ukraine. In order to determine the prospects for increasing the volume of output of these instruments of the Ukrainian stock market, their comparative analysis with alternative types of investments. Particular attention in this aspect is paid to the comparison of IGLBs with deposits, which today are considered the simplest, clearest and most proven way to invest money for individuals. An important role in this study is given to the analysis of key problems of the domestic government bond market, which have haunted the domestic economy since the independence of Ukraine. The main successes achieved in recent years by the Public Debt Management Office of Ukraine with the support of representatives of international financial organizations in terms of optimizing the domestic securities market are presented. The main steps that need to be taken for further real transformation of the debt securities market in Ukraine and which in the long run will reduce Ukraine's financial dependence on external creditors, in particular their requirements in the political and economic arena, are also outlined.

Taxation, Trust, and Government Debt: State-Elite Relations in Sichuan, 1850–1911

Modern China ◽  
2018 ◽  
Vol 45 (3) ◽  
pp. 239-294
Author(s):  
Elisabeth Kaske
Keyword(s):  
Public Debt ◽  
Government Debt ◽  
The State ◽  
Local State ◽  
The Public ◽  
Railway Company ◽  
The Qing Dynasty ◽  
State Elite ◽  
The 1911 Revolution ◽  
Relationship Of

This article explores the shifting relationship between the state and the rural elites in Sichuan during the last decades of the Qing dynasty through the lens of taxation and public debt by using a creditor-debtor model as a theoretical framework. Sichuan’s unique rewarded land tax surcharge, called the “Contribution” and levied since 1864, established a relationship of symbolic and economic indebtedness of the imperial and local state to the taxpayer. Western-inspired reforms after 1898 directly attacked the symbolic and economic bonds established by the Contribution. The Railway Rent Share tax shifted the creditor-debtor relationship from the state to the public Sichuan-Hankou Railway Company by making individual taxpayers into shareholders. When Beijing eventually banned what it saw as a privatization of taxation and decided to nationalize the railway company, this ignited the Railway Protection Movement, which precipitated the 1911 Revolution in Sichuan.

scholarly journals The Public Debt of Ukraine and the Budget Expenditure for Its Service

2018 ◽  
Vol 80 (1) ◽  
pp. 30-39 ◽  
Author(s):  
T. H. Bondaruk ◽  
O. S. Bondaruk ◽  
N. Yu. Melnychuk
Keyword(s):  
Public Debt ◽  
Debt Management ◽  
Public Budget ◽  
Sharp Drop ◽  
The Public ◽  
Debt Burden ◽  
Debt Dynamics ◽  
External Sources ◽  
Public Debt Management ◽  
Made In

the public debt is deepened, the visions of the public debt as a phenomenon burdening the national economy, found in various schools of economics, are reviewed. It is demonstrated that the high internal and external dept in parallel with the respectively growing expenditure for its service is a pressing problem for Ukraine, calling for an urgent solution. This raises the need for seeking ways to improve the public debt management mechanisms. The article’s objective is to deepen the theoretical and methodological framework for assessment of the public debt in Ukraine and the budget expenditures for its service. It is demonstrated that the public debt in Ukraine results from the public budget deficit, high sovereign borrowing from internal and external sources. The econometric assessment of the time series on budget expenditures for debt service and repayment in Ukraine is given. The analysis of the public debt dynamics in Ukraine shows that not only the increasing volume of public debt and State-guarantee debt, but also the increasing budget expenditures on its service and repayment are dangerous. The high deficit of public budget is persisting, which growth is caused, inter alia, by the payment commitments. The expenditures on service and repayment of public debt constitute a large share in the public budget expenditures. Forecasting calculations made in the article demonstrate the upward tendency in the public budget expenditures on repayment and service of the public debt of Ukraine, thus signaling the growing threats to the budget security of Ukraine. The main factors for the rapidly increased debt burden in Ukraine over the latest years are identified: the considerable devaluation of domestic currency (Hryvnya), sharp drop in GDP, the shrinking internal consumer demand, etc.    It is demonstrated that the risk of the increasing payments for service of public debt is an essential and chronic factor generating problems in public finances and affecting the budget security of Ukraine.  

scholarly journals FACTORS OF GROWTH OF THE EFFICIENCY OF PUBLIC DEBT MANAGEMENT

2021 ◽  
pp. 5-11
Author(s):  
M. E. Kosov
Keyword(s):  
Public Debt ◽  
Financial Management ◽  
The State ◽  
Debt Management ◽  
Macroeconomic Factors ◽  
The Public ◽  
Correlation And Regression Analysis ◽  
Public Financial Management ◽  
Public Debt Management ◽  
Debt Policy

Public debt is an integral part of public finances of various countries, the process of its management, including formation, maintenance and repayment has a powerful impact on the macroeconomic system of the state. The subject of the study is the public debt of the Russian Federation. The article performs a correlation and regression analysis of factors that have a direct impact on the state of the Russia’s public debt under the conditions of the restrictions caused by the Covid-19 coronavirus infection, as well as the consequences of these restrictions. The paper proposes an econometric model that describes a system of indirect macroeconomic factors that are not directly related to the state’s debt policy, but show the strongest influence on the formation of public debt in modern realities and increase the efficiency of its management, as well as reflect the quality of public financial management in general. The author concludes that the demographic burden and the indicator reflecting the ratio of the budget deficit to the total budget revenue have the greatest impact on the effectiveness of public debt management.

The treasury system of Russia–2021: New development trends amid increasing budgetary constraints

2021 ◽  
Vol 27 (2) ◽  
pp. 244-271
Author(s):  
Ol'ga V. GLUSHAKOVA
Keyword(s):  
Public Finance ◽  
Institutional Environment ◽  
Federal Budget ◽  
Payment System ◽  
Payment Systems ◽  
The Public ◽  
Payment Mechanism ◽  
Power Resources ◽  
Comparison Results ◽  
Regional Budgets

Subject. The article focuses on institutional transformations in bodies of the Federal Treasury in adopting the treasury payment mechanism and treasury service. Objectives. I analyze the performance of the public finance system in Russia during the COVID-19 crisis, and identify steps of the institutional environment emergence so as to adopt the treasury payment system and treasury service. I also evaluate whether it is possible to ensure the balance of the federal budget and regional budgets in Russia by placing temporarily available funds when introducing the treasury payment mechanism and implementing the technology of the single treasury account. Methods. The study is based on the systems and institutional approaches. I also resorted to general methods, such as the analysis, synthesis, comparison. Results. The revenue of the federal budget was found to drop considerably due to the lower business activity in Russia and worldwide and a decrease in the demand and prices for strategic power resources. The article outlines steps of the institutional environment emergence to adopt the treasury payment system and treasury service. Additional income from the placement of temporarily available federal and regional funds was found to be insufficient to ensure the balance of the above budgets. Conclusions and Relevance. Going beyond the structural conservatism of the national economy will lower the public finance sustainability risks amid rapidly changing development challenges, including the COVID-19 that outbroke worldwide in 2020. The findings can be used for practical purposes by the Federal Treasury and other parties to the treasury payment systems so as to improve its performance.

The Analysis of 2008 Global Crisis in Terms of the Sustainability of Public Debt Stock and Budget Deficits of PIIGS Countries Panel Data Analysis

2015 ◽  
pp. 329-336
Author(s):  
Binhan Elif Yilmaz ◽  
Ferda Yerdelen Tatoglu ◽  
Sinan Ataer
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Public Debt ◽  
Economic Condition ◽  
Panel Data Analysis ◽  
Budget Deficits ◽  
Global Crisis ◽  
The Public ◽  
Sustainability Of Public Debt ◽  
Public Debts

In this chapter, we have focused the impacts of 2008 global crisis on the debt policies and the sustainability of debts in the PIIGS Countries. For that, the circumstances of the global crisis are examined, and the economic condition before the crisis is handled. As a main objective, the public debt indicators of PIIGS Countries are pointed out. The ratios and budget units are evaluated in terms of sustainability of debts. While making these evaluations and examinations our method was panel data analysis which can be found at the end of this chapter. In this method, public debt ratios and the sustainability conditions of the public debts in the PIIGS Countries are used as the determinants of public debts sustainability.

scholarly journals Fiscal Rules, Creative Accounting and Fiscal Transparency: An Evaluation on the Transition Economies

2015 ◽  
Author(s):  
İlter Ünlükaplan ◽  
Volkan Yurdadoğ ◽  
Ebru Canıkalp
Keyword(s):  
Public Finance ◽  
Good Governance ◽  
Fiscal Rules ◽  
Accounting System ◽  
Budget Deficits ◽  
The Public ◽  
Fiscal Transparency ◽  
Government Accounting ◽  
Creative Accounting ◽  
The Relationship

An anonymous idea is observed in the public finance literature that includes where fiscal rules, i.e numerical rules on the fiscal indicators, are strict and stringent, policy executives will have incentives to recourse to creative accounting implementations to overcome these numerical limits. Creative accounting is applied for demonstrating economic, especially fiscal indicators better than the originals to reach the necessary fiscal limit, even if they are primarily conducted by private firms. Many countries applied these illusory implementations to hide their reported budget deficits especially in the last global crisis period. With this manner, creative accounting violates the basic principles of governance in public finance. In this context, governments should have to establish statistical classification structure and government accounting system that aims to prevent creative accounting. With this dimension, fiscal transparency will prevent from creative accounting implementations. In this study, the relationship between fiscal rules and creative accounting on the public finance administration level will be determined and fiscal transparency suggestions that prevent these frauds in the economies will be evaluated. As a result, the practice of good governance in public finance should be implemented to provide financial transparency. In addition, the reforms about transparency in the legislation should be consider as an important proposal.

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