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19ECONOMIC SCIENCES
IMPROVEMENT OF STATE CONTROL AS A BASIS FOR THE EFFECTIVE USE OF BUDGETARY
FUNDS
Chernyakov M.,
doctor of Economics Novosibirsk State Technical University 20 Karl Marx Ave., Novosibirsk, 630078, Russia
Kalinina D.,
Novosibirsk State Technical University 20 Karl Marx Ave., Novosibirsk, 630078, Russia
Akberov K., candidate of Economic Sciences Novosibirsk State University of Economics and Management 56 Kamenskaya str., Novosibirsk, 630099, Russia
Shuraev I.,
Siberian Institute of Management of the Russian Presidential Academy of National Economy and Public Administration 6 Nizhegorodskaya str., Novosibirsk, 630102, Russia
Listkov V.
Candidate of Agricultural Sciences Siberian University of Consumer Cooperation 26 Karl Marx Ave., Novosibirsk, 630078, Russia
Abstract
The state financial control is aimed at establishing proper order in the sphere of budgetary and financial relations. This goal can be achieved only if financial control is clearly organized and stable. The purpose of this article is to analyze the development of state financial control in the Russian Federation, as well as to develop measures to improve it on the example of the activities of the Accounting Chamber of the Russian Federation.
Keywords: state control, state budget, budgetary and financial relations, targeted use of budget funds, effective use of budget funds, Accounting Chamber.
State financial control in the Russian Federation is a form of state regulation of financial and industrial relations of all economic entities, contributing to the implementation of a unified financial, credit and monetary policy in the country, protection of the financial interests of the Russian Federation. Being a mandatory element of public property management, "state financial control is carried out in order to ensure the implementation of a unified financial, budgetary, monetary, tax, currency and investment policy in the Russian Federation, ensuring economic security and protecting the financial interests of the state, as well as its citizens and business entities." [1].
At the moment, the state financial control plays a key role in the system of efficient use of budget funds. The federal budget has been a vulnerable sector for many years. This is primarily due to the misuse of budgetary funds. Currently, a large number of state bodies and services have been created and are functioning in the Russian Federation, which are entrusted with the functions of state financial control and audit. Their functions, powers, status and areas of control activities are determined on the basis of decrees of the President of the Russian Federation, the Decree of the Government of the Russian Federation, relevant regulatory legal acts and relevant regulations.
Due to the lack of transparency, there is no trust in decision makers. Any amount of expenditure, in particular with the use of budgetary funds, leads to suspicion of inefficiency in the distribution of financial resources [2].
The mechanisms should be aimed at ensuring transparency in the expenditure of funds from the budget. At the same time, transparency is very important not only for the actions of the recipient of funds, but also for the entire chain of execution, whether it is government contracts or recipients of subsidies who continue to use the funds for their intended purpose. A huge reserve of work is associated with the so-called continuity of activity or continuity of control. The volume is so large that it is not possible to work out all the information. To solve this problem, it is necessary to pay attention to the budget monitoring system. The development of a budget monitoring system as a tool for managing the state budget is one of the priorities for improving control over the execution of financial resources. Also, the problem of state audit is the lack of professional personnel in this area. For the development of state audit in Russia, young highly qualified professionals are needed. A professional state auditor should have basic knowledge of economics, law, and a foreign language. He especially highlights the difficul-
ties of the language barrier of specialists. Thus, a significant role in the implementation of financial control belongs to the state (municipal) control bodies.
In particular, we can detect the intersection of the competencies of the Government and the Central Bank of the Russian Federation in the field of guarantees and the implementation of a unified financial, credit and monetary policy. Also, the similarity of the powers of the Federal Treasury and the Central Bank of the Russian Federation in terms of currency regulation.
The bodies of the State Fiscal Committee, including the Accounts Chamber of the Russian Federation, do not have independent levers of power, therefore their strength and influence lie in the quality of the work carried out. In order to consolidate its influence, the GFC must be constantly improved, which should result in an increase in the efficiency of the GFC and the quality of the state audit, which makes it possible to assess not only the legality of spending budget funds, but also the effectiveness of using state resources to achieve socioeconomic goals [3].
Such events are predetermined by the vagueness of the wording, which entails a misinterpretation of legal norms, the absence of acts, the adoption of which is conditioned by practice.
Taking into account all the above, in order to improve state financial control, it is necessary to:
- improve the control of public expenditures, and assess their effectiveness;
- strengthening the transparency of the activities of organizations using taxpayer funds;
- introduction of new technologies for conducting control checks on the use of budget funds;
- development of a single methodological basis for performance audit for the control and accounting bodies of financial control;
- ensuring compliance with financial discipline and minimizing financial irregularities and corruption;
- combining the efforts of regulatory bodies of legislative and executive authorities to create a system for auditing the effectiveness of the use of budgetary funds;
- determining the direction of capital movement, limiting the export of capital abroad;
- creation of personnel training centers for advanced training and professionalism of specialists engaged in control and economic work [4].
The organization and functioning of an effective financial control system is a mandatory and indispensable element of the state financial policy. State financial control, playing an essential role in ensuring the functioning of the state, can simultaneously be qualified as a function of social management and legal regulation.
One of the ways to improve the financial system in the regions is to conduct an annual analysis of the financial activity of the entity. Analysis as one of the methods of financial control is understood as a detailed study of the annual financial and accounting statements for the purpose of a general assessment of the results of financial activities. This control method is characterized by a systematic approach and includes various economic and mathematical techniques.
The organization and functioning of an effective financial control system is a mandatory and indispensable element of the state financial policy. State financial control, playing an essential role in ensuring the functioning of the state, can simultaneously be qualified as a function of social management and legal regulation [5].
The development of a budget monitoring system as a tool for managing the state budget is one of the priorities for improving control over the execution of financial resources. Also, the problem of state audit is the lack of professional personnel in this area. For the development of state audit in Russia, young highly qualified professionals are needed. A professional state auditor should have basic knowledge of economics, law, and a foreign language. He especially highlights the difficulties of the language barrier of specialists. Thus, a significant role in the implementation of financial control belongs to the state (municipal) control bodies.
In order to improve the system of financial control, it is necessary:
- to establish an equal position for all subjects of financial control;
- to tighten measures for the suppression of offenses identified during the financial control;
-to endow the Accounts Chamber of the Russian Federation with additional powers to conduct financial control throughout the territory of the Russian Federation;
-systematize the activities of the control and accounting bodies of the subjects of the Russian Federation, as well as municipalities;
- to fix the methods of financial control in regulatory acts [6].
The article was prepared with the financial support of the Novosibirsk State Technical University (project C21-11).
References
1. Chernyakov M.K., Chernyakov V.M. Application of the "Management By Goals" Method to the Organization Management System // Bulletin of the Siberian University of Consumer Cooperation. 2015. No. 3 (14). pp. 19-22.Pustovit, G. Sovereign Debt Contracts: Implications of Trust Arrangements for Financial (In)stability, European Business Organization Law Review, 2016, 17(1-2), 41-70.
2. Chernyakov M.K., Chernyakov V.M. Improving the Management System of an Organization By the Method of "Management By Goals" // In the collection: Mathematical methods and models in the study of state and corporate finance and financial markets. Collection of materials of the All-Russian scientific and practical conference. 2015. pp. 129-134.
3. Chernyakov M.K., Chernyakova M.M., Razo-masova E.A., Harutyunyan N.V. Innodiversification // Competitiveness in the global world: economics, science, technology. 2016. No. 6 (18). pp. 283-287.
4. Chernyakov M.K., Koloskova N.V. How Financial Technologies Change the World (Educational Aspect) // Competitiveness in the global world: economics, science, technology. 2017. No. 12 (59). pp.
758-762.
5. Chemyakov M.K., Lyarskaya K.K. Forecasting of the Municipal Budget By the "Potential Function" Method // In the collection: Mathematical methods and models in the study of public and corporate finance and financial markets. Collection of materials of the All-Russian scientific and practical conference. 2015. pp. 278-283.
6. Tereshchenkova S.M. State Financial Control in the System of Ensuring Economic Security // In the book: The school of V.D. Novodvorsky. Materials of the XIII International Scientific and practical conference of young scientists, students and undergraduates. Edited by L.G. Glubokov, D.V. Kohanenko. 2019. pp. 181-185.
PROTECTIONISM AND IMPORT SUBSTITUTION AS PART OF THE NATIONAL SOCIOECONOMIC AND SCIENTIFIC-TECHNOLOGICAL DEVELOPMENT POLICY
Luchinkin M.Y.
EMBA, DBA
Deputy Director of ICT Competence Center 33-2, Usacheva st., Moscow, Russia
Abstract
This article describes protectionism policy and import substitution mechanisms for national economic development, support for the development of "emerging" and priority economic sectors, the relationship between protectionism and openness policies, analyzing the state policy of import substitution and the emerging risks associated with its implementation.
Keywords: long-term economic development, world economy, scientific and technological progress, state policy, globalization, protectionism, import substitution, support for the development of "emerging" and priority economic sectors, international competition
Introduction
Economists have been arguing for many decades in the academic community about which economic models allow a country to develop sustainably in the long term, increase a country's wealth and its citizens' prosperity, and which are detrimental to the national economy. Scientific battles about the state's role in national development, national governments' development mechanisms and state regulation efficiency under global economic development, the markets' openness and the cross-border flow of capital, workforce, knowledge and technologies also continue unabated.
Some economists argue, based on empirical research, that development is only possible through international trade, the maximum openness of markets and competition's unlimited power. Others say, also confirming their arguments with research results, that the basis for development is a protectionist policy, an active role in the economic development and national market management. At the same time, international economic history has taught the world some important lessons.
In the first place, completely open or closed economies have failed. But countries that combined models that provided protection for national companies while managing national economic openness have succeeded.
Second, for some countries, globalization and openness have been a source for development and increased state, economic agents and citizens' well-being, but for others they have been the cause of poverty, economic or technological dependence on the former. A country benefits from globalization only by having strong national production.
Third, absolute openness of the domestic market sooner or later leads to technological and product dependence of the country. Countries possessing a technology benefit meaningfully from openness at the other countries' expense, and then, when it is profitable, use their monopolistic rights to these technologies to put economic and political pressure on other countries that have become their "technological colonies".
Fourth, for each country that chooses to take advantages of globalization and openness, or the benefits provided by protectionism and import substitution tools, there is a price, which depends on many internal and external factors and conditions.
Fifth, it is possible to distinguish five basic socioeconomic development strategies based on scientific and technological progress. Countries combine different strategies based on their development stage and "windows of opportunity", with protectionism, openness and export support policies being an integral part [7].
Scientific basis of protectionism and import substitution
Theoretical and practical aspects of the protectionism policy and the application of import substitution mechanisms for national development purposes have received significant attention from many scientists and researchers, including P. Samuelson, F. List, S. Neumann, A.R. Adwale, S. Mukherjee, A. Jaleel, W. Baer, Ko Min Lin, A.H. Amsden, A.R. Adewale, S. Cooke, P. Watson and others.
For example, P. Samuelson pointed out that, on the one hand, protectionism prevents comparative advantage forces from acting as efficiently as possible, and on the other hand, protectionism in one country
