INFLUENCE OF SUBJECTIVISM ON THE EFFECTIVENESS OF STATE FINANCIAL CONTROL IN THE AREA OF BUDGET ALLOCATION

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

Published: Dec 12, 2017

  Tetiana Mishchenko

Abstract

The purpose of the article is to study the impact of subjects of state financial control, primarily internal, over the budget on all levels of executive power, in order to eliminate subjectivity in their actions and increase the efficiency of public finances in general. Method. The study, which requires a deeper consideration of the issue of transformation of the content of the role performed by subjects of state financial control, primarily internal, in the presence of crisis phenomena in the economy. Methodology. The study of this issue is based on the analysis of the performance of the State Audit Service of Ukraine in identifying violations that led to losses of financial and material resources for the period of 2011–2017. Results. In our opinion, the dynamics of a constant decrease in the size of eliminated financial violations testifies to the insignificant effectiveness of the implemented control measures. The lowest, according to statistical indicators, is an indicator of elimination of financial violations in recent years, as well, the number of financial audits has also decreased significantly. Moreover, the number of inspections in individual cases had no effect on the final result. At the same time, the transition to new standards of inspections, with a view to deregulating and reducing the level of subjectivism, is less effective, but more transparent, which is positive in a slowdown of the economy, despite a certain reduction, but there is a significant level of corruption. Subjectivity in the actions of the controlling bodies can exert significant pressure on the entities subject to their supervision. Therefore, in order to achieve an optimal balance between the effectiveness of control measures and the reduction of pressure on economic entities, it is necessary to bring the existing system to standards that correspond to the level of developed countries. Currently, the process of changing approaches to inspections is based on the selection of objects that are subject to inspections based on a prior assessment of risks. Practical implications. The domestic system of internal state financial control is characterized by a significant level of subjectivism. It is substantiated that the reorganization of the system of internal state financial control is directly related to the reorganization of the entire system of public finances, in particular, one of its most important components – the system of state purchases.

How to Cite

Mishchenko, T. (2017). INFLUENCE OF SUBJECTIVISM ON THE EFFECTIVENESS OF STATE FINANCIAL CONTROL IN THE AREA OF BUDGET ALLOCATION. Baltic Journal of Economic Studies, 3(5), 298-303. https://doi.org/10.30525/2256-0742/2017-3-5-298-303
Article views: 220 | PDF Downloads: 153

##plugins.themes.bootstrap3.article.details##

Keywords

state financial control, public finances, budget, elimination of financial violations, State Audit Service of Ukraine.

References

Stefaniuk, I. (2011). Derzhavnyi finansovyi kontrol: klasyfikatsiini kharakterystyky [State financial control : classification characteristics]. Herald of Kyiv national university of trade and economy, no. 4, pp. 42-51.(in Ukrainian)

Konstytutsiia Ukrainy (1996). [Constitution of Ukraine, as for 20 January, 2018. Codified text]. Retrieved from: http://zakon3.rada.gov.ua/laws/show/254%D0%BA/96-%D0%B2%D1%80/page2 (accessed 20 January 2018) (in Ukrainian)

Polishchuk, V. V. (2014). Napryamky udoskonalennya systemy derzhavnoho finansovoho kontrolyu: vprovadzhennya stratehichnoho audytu [Ways of state financial control system improvement: strategic audit implementation]. Public management: theory and practice, no. 1, pp. 145-149 (in Ukrainian)

Pro utvorennia Dergavnoi auditorskoi slugbu. Postanova Kabinetu Ministrov Ukrainy vid 28.10.2015 №868 [Concerning State auditing service establishing. Cabinet of Ministers of Ukraine Directive of October 28, 2015 №868]. Retrieved from: http://zakon2.rada.gov.ua/laws/show/868-2015-%D0%BF. (accessed 20 January 2018) (in Ukrainian)

Zvit pro resultaty diyalnosti Dergfininspectsii ta ii territorialnyh organiv za 2011 rik (stanom na 31.12.2011) [State financial inspection and its regional divisions performance, 2011 Final Report as of December 31, 2011]. Retrieved from: http://www.dkrs.gov.ua/kru/uk/publish/article/83794. (in Ukrainian)

Zvit pro resultaty diyalnosti Dergfininspectsii ta ii territorialnyh organiv za 2012 rik (stanom na 31.12.2012) [State financial inspection and its regional divisions performance, 2012 Final Report as of December 31, 2012]. Retrieved from: http://www.dkrs.gov.ua/kru/uk/publish/article/96310. (in Ukrainian)

Zvit pro resultaty diyalnosti Dergfininspectsii ta ii territorialnyh organiv za 2013 rik (stanom na 31.12.2013) [State financial inspection and its regional divisions performance, 2013 Final Report as of December 31, 2013]. Retrieved from: http://www.dkrs.gov.ua/kru/uk/publish/article/96310. (in Ukrainian)

Zvit pro resultaty diyalnosti Dergfininspectsii ta ii territorialnyh organiv za sichen-gruden 2016 roky (stanom na 31.12.2016) [State financial inspection and its regional divisions performance, 2016 Final Report as of December 31, 2016]. Retrieved from: http://dkrs.kmu.gov.ua/kru/doccatalog/document?id=132218. (in Ukrainian)

Zvit pro resultaty diyalnosti Dergfininspectsii ta ii territorialnyh organiv za sichen-gruden 2017 roky (stanom na 31.12.2017) [State financial inspection and its regional divisions performance, 2017 Final Report as of December 31, 2017]. Retrieved from: http://dkrs.kmu.gov.ua/kru/doccatalog/document?id=132218. (in Ukrainian)

Luchko, M. R. and others. (2015). Control u dergavnomy sectori economiki: navch. posib. [Control in the public sector of economy: manual]. Ternopil: TNEU. (in Ukrainian)

Pikhotskyi, V. F. (2015). Systema dergavnogo financovogo controliu v Ukraini: contseptyalni zasadu teorii i practiki. Avtoreferat dissertatsii doctora economichnih nauk. [State financial control system in Ukraine: conceptual basics in theory and practice. Extended abstract of PhD dissertation in economics]. Lviv: National University named after I. Franko. (in Ukrainian)