Public Capital Budgeting and Management Process in Russia

2019 ◽  
pp. 113-133
Author(s):  
Natalia B. Ermasova ◽  
Polina Ermasova
Keyword(s):  
Capital Expenditure ◽  
Public Investment ◽  
Public Capital ◽  
Capital Budgeting ◽  
Federal State ◽  
Public Infrastructure ◽  
Management Processes ◽  
Recent Trends ◽  
State And Local ◽  
Main Components

This chapter provides a case study from Russia regarding public capital budgeting and management at the federal, state, and local levels. This chapter presents an analysis of four main components of Russian capital budgeting system including (1) long-term public capital planning, (2) annual public budgeting and financing, (3) project execution, and (4) public infrastructure evaluation. This research explains the general challenges of capital budgeting process after the several decades of financial and budget reforms. This chapter presents the structure and classification of the capital budget as well as recent trends in capital expenditure levels in Russia. The authors review the capital resource allocations across sectors based on investment needs and national priorities in Russia. The chapter explains public investment management processes and presents recommendations to improve the efficiency of public capital budgeting in Russia.

The Case of Public Capital Budgeting and Management Processes in the United States

2019 ◽  
pp. 23-48 ◽  
Author(s):  
Natalia B. Ermasova ◽  
Carol Ebdon
Keyword(s):  
United States ◽  
Public Investment ◽  
Public Capital ◽  
Capital Budgeting ◽  
The United States ◽  
Federal State ◽  
Public Infrastructure ◽  
Positive Theory ◽  
State And Local ◽  
Main Components

This chapter provides a case study from the United States regarding public capital budgeting and management on the federal, state, and local levels. The U.S. case of the public investment process (or positive theory for United States public investment) is described and compared with the normative theory outlined in Chapter 1 to understand the deviation between the positive and normative theories. This chapter presents an analysis of four main components of the USA capital budgeting system including (1) long-term public capital planning, (2) annual public budgeting and financing, (3) project execution, and (4) public infrastructure evaluation. In addition, this chapter shows public infrastructure needs and financing issues in the United States.

The Case of Public Capital Budgeting and Management Process in Germany

2019 ◽  
pp. 49-72
Author(s):  
Natalia B. Ermasova
Keyword(s):  
Public Capital ◽  
Capital Budgeting ◽  
Management Process ◽  
Capital Investments ◽  
Public Infrastructure ◽  
Public Budgeting ◽  
Recent Trends ◽  
Main Components ◽  
Budgeting Process

This chapter presents an analysis of four main components of the German capital budgeting system including (1) long-term public capital planning, (2) annual public budgeting and financing, (3) project execution, and (4) public infrastructure evaluation. Germany provides good conditions for capital investments. This chapter explains main reasons for it: institutional framework, healthy public finance, structural reform, and special investment and redemption fund that gave a boost to investments in infrastructure. This case describes the capital budgeting process in Germany and explains the recent trends of public capital investments.

Thai Public Capital Budget and Management Process

2019 ◽  
pp. 206-235
Author(s):  
Arwiphawee Srithongrung ◽  
Kenneth A. Kriz
Keyword(s):  
Local Governments ◽  
Public Investment ◽  
Public Capital ◽  
Capital Budgeting ◽  
Infrastructure Investment ◽  
Budget Process ◽  
Public Infrastructure ◽  
The Public ◽  
Debt Capacity

This chapter describes the public capital budgeting process in Thailand. Public infrastructure is very centralized; local governments do not play a large role in public infrastructure investment. The country's long-term physical planning is fragmented and lacks an effective long-term fiscal planning. The budget process is dominated by senior civil servants in the Bureau of the Budget, the Ministry of Finance, Bank of Thailand, and the National Economic and Social Development Board. Expensive projects financed by long-term debt bypass the budget process, and as a result, a comprehensive list of annually approved projects is unavailable to the public. This leads to public investment being driven almost entirely by debt capacity. Because of these factors, Thai governments have invested too little in public infrastructure, and the infrastructure investment is uneven across sectors.

Capital Budgeting and Public Investment Projects in Ukraine

2019 ◽  
pp. 93-112
Author(s):  
Olha Krupa
Keyword(s):  
Capital Investment ◽  
Capital Expenditure ◽  
Public Capital ◽  
Capital Budgeting ◽  
Budget Process ◽  
Capital Investments ◽  
Public Projects ◽  
Capital Spending ◽  
The Government ◽  
And Performance

This chapter discusses the budget process for public capital investments in Ukraine, presents controversies in the current process, and offers several avenues for improvement. In doing so, the author provides a description of the country's normative capital public budgeting framework, presents the institutional setup, and tracks Ukraine's public capital expenditure trends for nearly three decades (1991-2016). The study then discusses implementation, audit, and performance issues in Ukraine's public capital expenditure management and provides recommendations. Because of the country's limited fiscal capacity as compared to its massive infrastructure needs, the author posits that Ukraine can no longer afford to delay or ignore its most pressing public capital investment needs. Because the current list of capital investment proposals is underfunded and too long, the author suggests that the government focuses on finishing strategic, high-priority public projects, while other capital spending proposals target private sector financing once it becomes more readily available.

scholarly journals REVISITING THE OPTIMAL STATIONARY PUBLIC INVESTMENT POLICY IN ENDOGENOUS GROWTH ECONOMIES

2008 ◽  
Vol 12 (2) ◽  
pp. 172-194 ◽  
Author(s):  
GUSTAVO A. MARRERO
Keyword(s):  
Endogenous Growth ◽  
Public Investment ◽  
Public Capital ◽  
Optimal Choice ◽  
Public Infrastructure ◽  
The Public ◽  
Developed Economies ◽  
Elasticity Of Intertemporal Substitution ◽  
Output Ratio ◽  
Public Investment Policy

One part of the literature on endogenous growth concerns models where public infrastructure affects the private production process. An unsolved puzzle in this literature concerns observed public investment-to-output ratios for developed economies, which tend to fall short of theoretical model-based optimal ratios. We reexamine the optimal choice of public investment in a more general framework. This setting allows for long-lasting capital stocks, a lower depreciation rate for public capital than for private capital, an elasticity of intertemporal substitution that differs from unity, and the need to finance a nontrivial share of public services in output. Given other fundamentals in the economy, we show that the optimal public investment-to-output ratio is smaller for low-growth economies, for economies populated by consumers with low preferences for substituting consumption intertemporally, and when public capital is durable. For a calibrated economy, we show that a combination of these factors solves the public investment puzzle.

Public Capital Budgeting and Management Process in Moldova

2019 ◽  
pp. 134-156
Author(s):  
Erica Ceka
Keyword(s):  
Financial Management ◽  
Capital Investment ◽  
Public Capital ◽  
Capital Budgeting ◽  
Legal Framework ◽  
Investment Management ◽  
Capital Management ◽  
Public Infrastructure ◽  
Institutional Economic ◽  
Infrastructure Maintenance

As Moldova works toward building democracy and sustainable development, it is focusing its attention on increasing the effectiveness of public capital investment management. The chapter summarizes the current legal framework and practices in the field of capital management and budgeting in Moldova and compares the processes with a normative framework for effective capital investment management, focusing on capital planning, capital financial management, capital project execution and management, and public infrastructure maintenance. The analysis demonstrates that the public capital management and budgeting process in Moldova at the level of planning, allocation, and implementation of capital budgets falls short of its potential. The case reveals that despite a promising budgetary reform and comprehensive legal framework, the process of capital budgeting and management in Moldova remains ineffective due to institutional, economic, and political constraints.

Statewide Assessment of Broader Economic Benefits from Transportation Investment: Integration of Travel Demand Models and SHRP 2 Project C11 Tools in Maryland

2015 ◽  
Vol 2531 (1) ◽  
pp. 17-25 ◽  
Author(s):  
Eirini Kastrouni ◽  
Elham Shayanfar ◽  
Paul M. Schonfeld ◽  
Subrat Mahapatra ◽  
Lei Zhang
Keyword(s):  
Travel Demand ◽  
Public Investment ◽  
Economic Benefits ◽  
Federal State ◽  
Travel Time Reliability ◽  
Demand Model ◽  
Investment Projects ◽  
Demand Models ◽  
State And Local ◽  
Local Agencies

Project selection and prioritization are of utmost importance to federal, state, and local agencies and should be performed cautiously on the basis of expected project costs and benefits. Informed resource allocation decisions with respect to project candidates not only maximize public investment benefits but create economic opportunities and ultimately improve quality of life. With the use of tools readily available to most state agencies (e.g., travel demand models), along with the open-source SHRP 2 Project C11 tools, planners and engineers can proceed with informed statewide assessments of investment projects that yield benefits in market accessibility, travel time reliability, and connectivity. In this study, a seven-level framework was proposed to integrate a travel demand model with the SHRP 2 Project C11 tools and to showcase its functionality with the Intercounty Connector (ICC) MD-200 in Maryland as a case study. After a customized version of the SHRP 2 tools was developed in which Maryland-specific values were used in lieu of the default SHRP 2 parameters, the results suggested that, in the year 2030, a total increase of approximately 1% in buyer–supplier market accessibility would be achieved in the counties that surrounded the ICC as a result of the new construction. Also, all three corridors parallel to the ICC, which served similar origin–destination pairs, would experience a decrease in recurring and incident delays attributable to the ICC. In dollar terms, the value of the total annual benefits from the ICC construction in the year 2030 would amount to approximately $200 million.

scholarly journals A Systematic Public Capital Management and Budgeting Process

2019 ◽  
pp. 1-22 ◽  
Author(s):  
Arwiphawee Srithongrung ◽  
Juita-Elena (Wie) Yusuf ◽  
Kenneth A. Kriz
Keyword(s):  
Financial Management ◽  
Public Capital ◽  
Capital Budgeting ◽  
Capital Management ◽  
Capital Spending ◽  
Common Framework ◽  
Normative Practices ◽  
Main Components ◽  
Infrastructure Maintenance ◽  
Budgeting Process

This chapter introduces the readers to a public capital management and budgeting process and its role in generating public infrastructure networks. The main purpose of the chapter is to describe the normative public capital management and budgeting practices that are recommended by the public finance literature. These normative practices are segregated into four main components: (1) long-term capital planning, (2) capital budgeting and financial management, (3) capital project execution and project management, and (4) infrastructure maintenance. Given that the literature recommends specific practices to maximize efficiency in public capital spending, the four main components, combined, are referred to as the systematic capital management and budgeting process. The systematic process discussed in detail in this chapter is used as a common framework for each of the 12 country case studies in describing their respective public capital management and budgeting practices.

scholarly journals Republic of Estonia

2019 ◽  
Vol 19 (152) ◽  
pp. 1
Author(s):  
Keyword(s):  
Capital Stock ◽  
Capital Expenditure ◽  
Public Investment ◽  
Public Capital ◽  
Medium Term ◽  
Advanced Country ◽  
General Government ◽  
Efficiency And Effectiveness ◽  
High Level ◽  
The Eu

Public investment is a priority spending area, and Estonia is seeking to strengthen the efficiency and effectiveness of its capital expenditure from an already high level. Estonia’s general government capital expenditure has been higher than that of its neighboring comparators,1 EU countries or the average advanced country, at usually well above 5 percent of GDP. It is planned to continue at that level in the medium-term despite an expected decline of external grants from the EU. Thus, the level of public capital stock has been increasing as well as closing a gap to the comparator countries.

scholarly journals Ukraine

2019 ◽  
Vol 2019 (356) ◽  
Author(s):  
Keyword(s):  
Capital Stock ◽  
Public Investment ◽  
Emerging Market ◽  
Public Capital ◽  
Allocation Of Resources ◽  
Investment Management ◽  
Emerging Market Countries ◽  
Recent Trends ◽  
High Level ◽  
Efficiency Gap

Ukraine’s public capital stock has been on a declining path over the last 20 years. Having started the period at a relatively high level (99 percent of GDP in 1996), it now ranks amongst the lowest of its comparator countries (56 percent in 2013). Evidence as to the reasons for the deterioration point to significant and persistent weaknesses in the institutional framework surrounding public investment management, inefficient allocation of resources to productive public investment and high levels of perceived corruption. Ukraine currently has an efficiency gap of around 32 percent, which ranks it below average amongst emerging market countries and other comparators. Persistent under-investment, the currently high stock of debt, and ongoing institutional weaknesses, coupled with effects of the conflict in the East could see this gap continuing to grow, absent concerted efforts to reverse recent trends.

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