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Section 15. Economics and management
Radionov Yuriy Denysovych, Cand. of Econ. Sci., The Head of the International Standards Adaptation Department The Accounting Chamber of Ukraine (Kyiv) E-mail: radud@ukr.net
Budget violation as a factor deterring economic and social development of Ukraine
Abstract: This paper addresses the problem of the emergence of budget disorders and their impact on the socio-economic development of Ukraine. The reasons and factors that influence the growth of budget violations. The measures reduce the negative trends and rational use of budget allocations in order to achieve the best performance indicators and targets budget programs.
Keywords: budget system, budget violations, inefficient use of funds, misuse of funds, management decisions.
The development ofthe national economy, increase production, the provision ofqual-ity services, improve social standards requires enormous effort, especially the desire of society to achieve this goal zatratyvshy significant natural, material and financial resources.
International experience teaches that to succeed in the socio-economic sphere, ensuring and improving quality of life possible due to concentration of financial resources in priority areas of development, rational and efficient use of all potential opportunities to achieve well-defined goals.
Because of the national budget is allocated a significant share of gross domestic product, provided restructuring of the economy, achieved production efficiency, accelerating technological progress and on this basis increased standard of living.
Unfortunately, current trends in socio-economic development of Ukraine and the practice of using the budget indicates the existence of significant distortions and problems, because there are numerous budget violations that lead to ineffective and inappropriate use of public funds.
Despite the systemic nature of budget violations, this problem was somehow attracted the attention of researchers. We believe that the study of this problem, as well as develop some conceptual foundations overcome this shameful phenomenon in the Ukrainian economy is extremely important.
The scale inefficient use of budget suggests that the potential fiscal system in resolving urgent problems of social and economic development are not yet fully utilized. The reason for these difficulties is the poor use of state instruments to stimulate effective work and of focus managers and recipients of budget funds for achieving the goal of every state budget program or to obtain a positive outcome.
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Секция 15.Экономика и управление
The negative trend in terms of efficiency of use of public funds, lasting several years. Every year, the volume of inefficient use of public funds only grow. If for example in 2007, the Accounting Chamber of Ukraine was revealed evidence of inefficient use of funds in the amount of 5,6 billions griven, In 2008 this figure rose to 2,3 billions griven or 29,2 percent. In 2009 compared with 2007 volumes identified inefficient use of public funds has doubled, and in 2010 the figure was a record amount for the entire study period, namely 14,4 billions griven (Fig. 1).
Fig. 1. Volumes findings inefficient use of public funds (Powered by the author according to the report of the Accounting Chamber in 2012 [3, 26]) Analyzing the state of inefficient use of public funds (Figure) it seems that in 2011, the situation began to change, as detected amounts of inefficient use of public funds reduced slightly. Compared with 2010, the volume of detected cases decreased by 0,7 billions griven or 4,9 percent. In 2012 it was generally found evidence of inefficient use of public funds amounting to 8 billions 162,7 millions., Is 43,8 percent less than in 2010.
However, this trend of decline is some explanation. Since the monitoring activities of the Accounting Chamber was directed to carry out control and analytical measures to establish the real situation of the implementation of decisions and opinions of the Accounting Chamber and stimulate eliminate violations and deficiencies, improve the efficiency and effectiveness of inspections [3, 26]. That is, the reduction of inefficient use of public funds is not the result of an actual decline in inefficient use of resources by improving the effective management of budget resources, but due to the reorientation of the Accounting Chamber of Ukraine to conduct repeat audits to address previously identified deficiencies and irregularities in the use of public funds.
It should be noted that the effectiveness of budget expenditures relate not only to Ukraine. For example, Russian President V V Putin said that “Over the quality of planning and use of federal departments budget allocations must work seriously. This applies to both federal programs and operating costs. Identified annually considerable volumes of inefficient spending and programs. However, after these identified inefficient spending, they often have little or no way adjusted. Even official recognition inefficiency costs, the lack of results in achieving the goals do not lead to any consequences for those responsible. Funding for those activities, usually lasts» [1, 5].
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Section 15. Economics and management
Russian President expressed concern about the structure of budgetary expenditures, which “is not an optimal for economic development of stymul” V. V. Putin stressed that “Fiscal policy remains largely obscure to the public” and financial and economic justification of decisions that lead to new costs” [2].
Problems efficiency of budget expenditures exist in the European Union. We have a couple ofyears ago watched as first governments of countries such as Greece, Ireland, Italy, Spain, were forced to take strict fiscal discipline, cut costs, providing savings and rationalization of budget expenditures to ensure financial stability.
Inefficient use of resources and the growth of budget violations by nature carry a significant economic risks associated with the actual breakdown of budget programs and not the goal to which allocated budget. These risks do not appear in the time you enter into service startup facilities, the growth of long-term construction, spraying the budget, not the implementation of programs of social protection and so on.
Some key administrators not only create conditions for the effective use of public funds, and does not ensure their complete development, in the context of limited budget resources is unacceptable.
Thus, the Accounting Chamber of Ukraine effectiveness audit of subventions from the state budget to local budgets for the implementation of capital expenditure for health care facilities showed that from the open in 2012, in four allocation subvention of 1,4 billions griven utilized only 77 percent (in late 2012 returned to the state budget 330,2 millions griven). This is due to improper management of subsidies administrators in the field. In this situation, significantly inhibited the introduction of modern medical technologies in the prevention, diagnosis and treatment of diseases, not achieved the appropriate quality of service provided to the public municipal health care [5].
As the global financial crisis, reducing the number of violations in the public sector and ensure strict fiscal discipline for the rational use of each fiscal grivna is a reliable factor in stabilizing the financial system stability. An important factor in promoting the solution of urgent problems of development in achieving the priorities of social and economic goals.
Past studies give reason to conclude that the nature of violations — in non-compliance with the budget process participants of the current legislation, legal acts, and numerous troubles are the result of conscious action management aimed at clearly inefficient and inappropriate use of public money [6, 62].
We have found that in most cases (70 %) are the root cause of inefficient managerial decisions made under the influence of so-called human factor associated with professional skill officials (insufficient level of their low liability) [7, 44].
Insufficiently trained, both in theoretical and practical terms, officials from the low level of knowledge, experience and individual skills are not able to make timely, informed, decisions.
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List of inefficient management decisions is quite diverse, as their character according to the industry and scope of economic activity is quite versatile. In addition, the decision itself is not always correct and economically viable solutions implemented in different circumstances and for different schemes and is widespread in the budgetary system of Ukraine. In turn, such a state is a threat to financial security.
Budget violation hinder economic growth and the growth rate of labor productivity. Because not purchased or vice versa purchased medical equipment that is idle for years in the open air and not in operation and through moral or physical deterioration may eventually evolve into a scrap. Just as not timely introduction into operation of objects in the future will require additional budgetary allocations for their completion. These examples not only contribute to economic growth and social sphere, and vice versa in every way he is detained.
Gregori Menk’yu said “Structural high standard of living — is to increase productivity, and hence, access to education workers, advanced technologies, tools, and instruments of labor” [4, 38].
The use of budget funds against the budget program makes it impossible to prepare highly qualified personnel for the needs of the national economy, create new technologies, to provide growth capital-labor ratio enterprises. At the same time, funds from the state budget for specialist training or conducting scientific research or purchase of equipment is used, but there is no result.
To radically change the situation must learn to effectively manage financial resources to achieve the objectives in the most economical, efficient and effective way.
We believe that it is possible to correct the situation by finding ways to enhance positive actions and mitigation of negative factors. This search is appropriate in two areas: the use of innovative financial management and improve existing tools for the use of resources, including by reducing direct costs and budgetary violations in the use of public funds.
It should be remembered that even during the global financial crisis, saving the budget does not mean they minimize the contrary allocation of financial resources of the state should continue for as long as possible will not benefit from further reallocation of budget funds. This approach, in our opinion, is the projected cost, balanced and will result in potentially great economic and social dividends.
References:
1. Главное - эффективность бюджетных расходов//Финансы. - 2011. - № 5. - с. 5.
2. Главные проблемы бюджета России. - 2012. [Электр. ресурс] Режим доступа: http: www.delo.ua/. - 180252.
3. Звтг Рахунково! палати за 2012 рж. Кшв - 2013. 198 с.
4. Мэнкью Н. Г. Принципы макроэкономики. 4-е изд./Пер. с англ. - СПб.: Питер, 2008. - 544 с.
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5. Придбане медобладнання мае запрацювати. Рахункова палата Украши. К., 2013. [Електр. ресурс] - Режим доступу www.ac-rada.gov.ua http://portal. rp.int/control/main/uk/publish/article/16742498.
6. Радiонов Ю. Д. OcnoBni види та суть бюджетних порушень//Економiка Украши. - 2012. -№ 8. - с. 55-63.
7. Рад1онов Ю. Д. Управлшськ р1шення як фактор неефективного використання бюджетних кошт1в//Економ1ка Украши. - 2012. - № 12. - с. 41-51.
Ruzmetov Baxtiyar, professor, Egamov Baxtiyor, P, h.d, Ruzmetov Sherzod, P, h.d, Named after Al-Xorazmiy Urgench state university, Economics Faculty, Economic sub-faculty E-mail: e_bahtiyar@mail.ru
Important attractive direction economic program of Uzbekistan
Abstract: Hot only the results of realization of social-economic reforms in Uzbekistan, but also the analyze of economic development of Uzbek model and its effectiveness are given in the article.
Keywords: region economics, economic developing of Uzbek model, comfortable investition climate.
Рузметов Бахтияр, д. э.н., проф., Эгамов Бахтиёр, к. э.н., доц., Рузметов Шерзод, к. э.н., доц,, кафедра «Экономика», Ургенчский государственный университет имени Ал-Хорезмий E-mail: e_bahtiyar@mail.ru
Важнейшие приоритетные направления экономической программы Узбекистана
Аннотация: В статье рассматриваются результаты реализации социальноэкономических реформ в Узбекистане. Приводится анализ эффективности узбекской модели экономического развития.
Ключевые слова: региональная экономика, узбекская модель экономического развития, комфортный инвестиционный климат.
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