Evaluation of Budgeting Policy of the Ministry of Industry in Order to Improve the Performance of the Small and Medium Industrial Sector

Reform in the field of budgeting is characterized by a paradigm shift in the field of budgeting planning set out in law No. 17 of 2003 which is indicated by 3 (three) approaches, namely the implementation of integrated budgeting, the implementation of medium-term spending frameworks and the implementation of performance-based budgeting. But there are some problems encountered such as there are revisions to activities in the current budget year, performance-based budgets are so detailed in the planning stage but when accountability becomes administrative, the pattern of budget absorption that accumulates at the end of the year and the distribution of budgets that are not appropriate are part of the obstacles in improving the industrial sector. This research has the aim (1) of evaluating the suitability of budgeting of the Ministry of Industry with a budgeting approach; (2) Analyze spending activities at the Ministry of Industry that significantly affect the SMEs sector. The results showed that all the principles and components that make up the concept of integrated budgeting, performance-based budgeting and medium-term spending framework have basically been implemented by the Ministry of Industry in the preparation of work plans and budgets. The results of the double linear regression analysis showed that the realization of the Ministry of Industry's spending on HR development spending and technology spending significantly negatively affected the productivity shown performance in the SMEs sector. Managerial implications that can be given, namely the need for increased awareness and high commitment from all ranks in the Ministry of Industry in the implementation of performance-based budgeting systems through the provision of rewards and punishments at the internal level of the Ministry of SMEs. Keywords: Budget, Ministry of Industry, Multiple Linear Regression, Small and Medium Industries.

Pattern of Development Spending and Its Impact on Human Development Index and Gross State Domestic Product in Low-income States in India

The paper empirically examines the pattern and impact of development spending (DS) on human development index (HDI) and gross state domestic product (GSDP) in the low-income states (LIS), for the period of 1993–94 to 2014–15 for seven LIS states. Further analysing the sectoral impact of DS, panel unit root test and co-integration test were performed to analyse stationarity and panel long-run association among DS, GSDP and HDI. The paper finds that the share of DS in recent years for LIS is higher than the major states (MS), implying emphasis on social sector development. It also highlights the lagging behind a few LIS such as Uttar Pradesh, Jharkhand and Rajasthan. The paper sheds light on the long-run co-integrating relationship among DS, HDI and GSDP. It finds that the DS has a significant and positive influence on GSDP but not on HDI in the long run. Sector-specific analysis suggests a long-run equilibrium relationship between DS and all three sectors of economy. Though the coefficient of DS did not emerge to be significant for the HDI indicator, sector-specific analysis suggests that increased health spending is associated with better health outcomes. Prioritising on education, health and skill development, and other DS will help in economic advancement. Proper implementation of schemes may bring change in HDI outcomes.

Toward Innovation-Driven Competitiveness Across African Countries: An Analysis of Efficiency of R&D Expenditures

The main goal of this paper is to determine whether R&D funds are used efficiently in African countries. The innovativeness of a country’s economy is nowadays one of the key factors stimulating the economic growth and competitiveness. Becoming more innovative is important in particular for developing countries, whose governments are developing national innovation strategies (NIS) and assuming a steady increase in research and development spending. Efficient innovation policies are creating conditions for enterprise development and the increase of competitiveness of the country. A calculation of R&D spending efficiency for selected African economies for the years 2009-2017 was carried out using Data Envelopment Analysis methodology, which allows the evaluation of input-output efficiency. Public and private spending on R&D as % of GDP was the selected inputs indicator. The model examines three output indicators: the number of patent applications (per million inhabitants), high-technology exports (% of export), and number of technical and scientific journal articles (per million inhabitants). Among the analyzed countries, those on the efficiency frontier regarding the use of CRS methodology are South Africa and Tunisia. According to VRS methodology, the most efficient nations are South Africa, Tunisia, and Madagascar. The performed analysis has not confirmed our hypothesis regarding the non-proportional relation between higher R&D spending and innovation outputs. Considering limited innovation capacities across African countries, it appears to be reasonable to increase R&D expenditures gradually to achieve better results on the path toward innovationdriven growth and development.

Analysis of Corporate Investment Behaviour in Digital Technologies for Organisational Development Purposes

In the context of this study, a literature review and the survey of German business executives were conducted. On the way to digitalisation, companies try to support or replace as many processes as possible using software and tools. The main purpose of this study consisted in investigating corporate investment behaviour in digital technologies for organisational development. Since the progress in this area in recent period is very large, consists the need to determine how do companies choose the appropriate functions and how much are they willing to invest for their execution. The study relies on a review of recent publications, statistical analysis and empirical analysis based on the results of online surveys. Behavioural determinants defined include regularity and predictability of organisational development, spending points, purpose of investment, previous experience with investment object, possible reasons against investment. It was compared which characteristics of companies (number of employees, annual turnover, age of the company, orientation) can influence a statement about the level of investment in organisational development, as well as desired functions and possible decision against investment in digital technologies. Furthermore, the current expenditures for organisational development were compared with the investments of companies with the same characteristics. The results demonstrate the different distribution of statistically collected data for personal purposes and the estimated investment volumes for digital tools for organisational development, despite relatively similar figures for current expenditure on organisational development.

Irregular Ecologies

Cameroon, since 2016, has been witnessing what is now commonly referred to as the Anglophone Crisis (or the Ambazonia War) that has kept economic and social activities in the Anglophone Regions of Cameroon at bay with serious socio-economic implications on the local communities and the economic tissue of the regions. This paper explores the socio-economic challenges faced by the North West and South West Regions of Cameroon through the provision of a comprehensive analysis of the trends and economic implications of Anglophone Crisis. Moreover, the nature of conflicts has changed, with traditional civil wars giving way to non-state-based conflicts, including the targeting of civilians through terrorist attacks. The paper recommends that Cameroon, with the help of her partners, should focus on limiting the loss of human and physical capital by protecting social and development spending.

ANALYSIS OF TREND AND SOURCES OF GOVERNMENT BUDGET DEFICIT FINANCING IN BANGLADESH

Budget deficit is one of the most significant macroeconomic issues which have been debated both in the academic and political arena since 1970s. This study aims to explore the current position of government budget deficit, its trends, and sources of budget deficit financing in Bangladesh covering the periods of 1980 to 2018. Secondary data has been used which is collected from Bangladesh Economic Review and World Bank. Data has been analyzed through descriptive methods. The Government financing budget deficit from two sources like domestic and foreign sources. The study finds that Government finances most of its budget deficit from the domestic sources than foreign sources especially from non-banks sources due to the increase in the net sale of national savings certificates while borrowing from bank sources is on the decline. Along with the effective measures of generating more internal resources, the government should also focus on other areas to reduce the budget deficit. The government should be taken proper steps to make progressively investable resources and generate a fund for financing the non-development spending for reducing the reliance on debt that can guarantee more distribution on the development sector.

KAUSALITAS SERTA RESPONS PEREKONOMIAN, BELANJA PEMBANGUNAN TELEKOMUNIKASI PUBLIK DAN PENELITIAN PENGEMBANGAN DI INDONESIA

: This study aims to see causal relationship and response between the economy, public telecommunications development spending and research development expenditure in Indonesia. This study using a data starting from 1988-2019, using the Vector Autoregression (VAR) processing method. The results of this study indicate that: (1) There is no causality or reverse relationship between public telecommunications development spending and research development expenditure in Indonesia, (2) There is no causality relationship between research development expenditure and the economy in Indonesia, but there is a one-way relationship from the economy to research development expenditure in Indonesia, (3) There is a two-way causality relationship between public telecommunications development spending and economy in Indonesia, (4) There is an economic response due to public telecommunications development spending and research development expenditure shocks in Indonesia (5) There is a response to public telecommunications development spending due to economic and research development spending shocks in Indonesia (6) There is a response to research development spending due to economic and public telecommunications development spending shocks in Indonesia.Keyword : Economy, Public Telecommunications Development Spending and Research Development Expenditure

The Efficiency of R&D Expenditures in ASEAN Countries

The aim of this study is to determine whether funds spent on research and development are used efficiently in Association of Southeast Asian Nations (ASEAN) countries. Fifteen countries in the 2000-2016 period have been examined. Measuring the efficiency of research and development spending was performed using the non-parametric Data Envelopment Analysis (DEA) methodology, which allows for the assessment of input–output efficiency. The research includes the following input and output variables: annual public and private spending on innovation, high-technology exports as a percentage of manufactured exports, patent applications to the World Intellectual Property Organisation (WIPO) by priority year for million inhabitants, trademark applications (TA) for million inhabitants and information and communications technology (ICT) exports as a percentage of manufactured exports. Hong Kong and the Philippines are perhaps the most efficient with respect to research and development (R&D) when analysed using the constant return to scale (CRS) approach. However, according to the variable return to scale (VRS) approach, the most efficient ASEAN countries are Hong Kong, Indonesia, Singapore and the Philippines. The study also confirms that increased spending on innovation is resulting in non-proportional effects.

Kemampuan Keuangan Daerah dan Kesejahteraan Masyarakat Kabupaten-Kota di Provinsi Jawa Tengah

Penelitian ini bertujuan untuk mengidentifikasi potensi keuangan daerah dan kesejahteraan masyarakat, serta mencari pola hubungan dan dimensi spasial serta faktor-faktor penentu dan relasi diantara keduanya sebagai dasar perumusan kebijakan.Dengan analisis kuantitatif, hasil penelitian menunjukkan kondisi tingkat kemandirian keuangan yang cukup dengan kesejahteraan masysrakat yang rendah. Alokasi belanja untuk sosial masih sangat rendah (2%) sehingga sulit diharapkan peningkatan kesejahteraan dari keuangan daerah. Hasil analisis varian menunjukkan tingkat perbedaan keuangan daerah dan kesejahteraan masyarakat antara Kabupaten dan Kota dan juga hubungan erat antara indikator keuangan daerah dan kesejahteraan masyarakat. Semakin tinggi keuangan daerah akan diikuti dengan tingginya kesejahteraan masyarakat. Faktor-faktor yang dianggap berpengaruh nyata terhadap kesejahteraan masysrakat adalah penerimaan per penduduk (X1), tingkta kemandirian daerah (X2) dan efektivitas belanja pembangunan (X5). Tipologi daerah mengelompok pada Tipe I (keuangan tinggi, kesejahteraan tinggi) dan IV (keuangan rendah dan kesejahteraan rendah) sebanyak 77% dan dijadikan sebagai dasar penentuan prioritas pembangunan. This research aims to identify the local financial potential and the social welfare, and look for patterns of relationships and spatial dimensions as well as determinants and relations between the two as a basis for policy formulation. With quantitative analysis, the results of the study indicate the condition of sufficient level of financial independence with the welfare of the community low. The allocation of expenditure for social affairs is still very low (2%) so it is difficult to expect an increase in welfare from local finances. The results of the analysis of variance indicate the level of local financial disparity and the welfare of the community between districts and cities and also the close relationship between local financial indicators and social welfare. The higher regional finances will be followed by high social welfare. Factors considered to have a significant effect on social welfare are income per population (X1), regional independence (X2) and the effectiveness of development spending (X5). Regional typologies cluster in Type I (high finance, high welfare) and IV (low finance and low welfare) as much as 77% and serve as a basis for determining development priorities