№ 10/2017

Fìnansi Ukr. 2017 (10): 27–42

PUBLIC FINANCE MANAGEMENT

HORBATIUK Viktoriia , MАТУЗКА Yaroslav ¹

¹PJSC CB “PrivatBank”

Institutional bases for electronic budgeting on the principles of openness and transparency

The article reveals the institutional beginnings of the formation of the system of electronic budgeting and public finance management in Ukraine on the basis of openness and transparency. This process is examined from the perspective of creating the necessary conditions for the implementation of appropriate information tools. The content of electronic budgeting, its significance and functional role in ensuring transparency of public finances in increasing the level of trust in financial institutions and public participation are revealed. Electronic document circulation in Ukraine under the conditions of institutional changes is considered as a combination of new technologies of work with public finance documents and a key tool in organizing the interaction of components of the system, which provides various operations of processing financial documents. It is argued that in this system, openness, transparency, and the electronic environment of activity are important factors for improving the functioning and progressive reform of the national economy and finance. The “strong and weak” sides of the Ukrainian rating in the Open Budget are highlighted. It is proved that the general assessment of the Ukrainian budget’s openness in 2017 (46 points per 100-point system) indicates the prevalence of “weaknesses” (lack of information on the medium-term budget, lack of detailed expenditure and income items, etc.) over “strengths”. The key stages and contents of the development of e-budgeting in Ukraine are determined and the conclusion is made that it is only at the initial stage of its formation. The article analyzes the individual elements, which together form the mechanism of electronic budgeting and transparency of public finances. The standards of the best world practice are revealed and highlighted to ensure the transparency and openness of public finances. It is argued that problems arise as a result of incomplete use of these standards in Ukraine. The most important recommendations for the Code of Best Practices for Openness and Transparency in Public Finance are substantiated and proposed for use.

Keywords:electronic document flow, institution of transparency, quality, institution of openness, finance, institutional principles, electronic budgeting

JEL: H60, H61

HORBATIUK V. . Institutional bases for electronic budgeting on the principles of openness and transparency / V. . HORBATIUK, Y. Mатузка // Фінанси України. - 2017. - № 10. - C. 27-42.

Article original in Ukrainian (pp. 27 - 42)

Download

Downloads :220

1. Kolesny`k, V. M., Artemenko, D. A. (2017). The problems of determination and the prospect of development of electronic money in Ukraine. Global and national problems of economics, 17. Retrieved from www.global-national.in.ua [in Ukrainian].
2. Cabinet of Ministers of Ukraine. (2016). Some issues of preventing corruption in ministries, other central executive bodies (Order No. 803-р, October 5). Retrieved from zakon5.rada.gov.ua/laws/show/803-2016-%D1 %80 [in Ukrainian].
3. Kasperovy`ch, Yu. V. (n. d.). Priority directions for improving the efficiency and transparency of public finances. NІSD. Retrieved from www.niss.gov.ua/content/articles/files/prozorist-19d5a.pdf [in Ukrainian].
4. Kosova, T. D., Anhelіna, І. A. (2014). Fiscal Transparency Code: initiatives of IMF. Donbass Economic Bulletin, 3 (37), 77–81 [in Ukrainian].
5. Baumann, E. (2014). Planning and formation of the realistic and transparent budget. Finance of Ukraine, 9, 7–20 [in Ukrainian].
6. Buchanan, J. M., Musgrave, R. A. (2004). Public finance and public choice: two contrasting visions of the state. Ky`yiv: VD “KM Akademіya” [in Ukrainian].
7. North, D. (2000). Institutions, institutional change and economic performance. Ky`yiv: Osnovy` [in Ukrainian].
8. Perez, C. (2013). Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages. Moscow: Delo [in Russian].
9. Toffler, A. (2000). The third wave. Ky`yiv: Vsesvіt [in Ukrainian].
10. Freeman, C., Louca, F. (2008). As Time Goes By: From the Industrial Revolutions to the Information Revolution. Ky`yiv: VD “KM Akademіya” [in Ukrainian].
11. Hodgson, G. (2003). Economics and institutions: a manifesto for a modern institutional economics. Moscow: Delo [in Russian].
12. Gasanov, S. S., Kudryashov, V. P., & Balakіn, R. L. (2015). Foreign experience of insuring the transparency of operations in fiscal area and its application in Ukraine. Finance of Ukraine, 11, 22–42 [in Ukrainian].
13. Heyec`, V. M. (2016). Ukraine’s economy: key problems and prospects. Economy and forecasting, 1, 7–22 [in Ukrainian].
14. Hry`cenko, A. A. (2017). Logical and historical bases of cardinal economic changes and transition to reconstructive development. Economy of Ukraine, 5-6, 39–58 [in Ukrainian].
15. Holubka, S. M. (2013). Institutionalization of financial economy of Ukraine (historical retrospective). Ky`yiv: DNNU “Akademіya fіnansovoho upravlіnnya” [in Ukrainian].
16. Dany`lenko, A. І. (Ed.). (2010). Fiscal and monetary policy in Ukraine: problems and ways to enhance interconnection. Ky`yiv: NAN Ukrayiny`, Іnsty`tut ekonomіky` ta prohnozuvannya [in Ukrainian].
17. Dem’yany`shy`n, V. H. (2008). Theoretical conceptualization and practical implementation of the Budget doctrine of Ukraine. Ternopіl`: TNEU [in Ukrainian].
18. Yefy`menko, T. І. (2012). Financial science and economic reforms: institutional aspect. Finances of Ukraine, 8, 5–22 [in Ukrainian].
19. Zy`movec`, V. V. (2010). State financial policy of economic development. Ky`yiv: NAN Ukrayiny`, Іnsty`tut ekonomіky` ta prohnozuvannya [in Ukrainian].
20. Kraus, N. M. (2015). The formation of an innovative economy in conditions of institutional changes. Ky`yiv: CUL [in Ukrainian].
21. Kudryashov, V. P. (2016). Recommendations of IMF on questions of the fiscal policy and their account in Ukraine. Economy of Ukraine, 10, 3–19 [in Ukrainian].
22. Lunіna, І. O. (Ed.). (2014). Development of public finances of Ukraine in the conditions of globalization. Ky`yiv: NAN Ukrayiny`, Іnsty`tut ekonomіky` ta prohnozuvannya [in Ukrainian].
23. Nakonechna, Yu., Demy`denko, L. (2016). Opennes and transparency of state and local budgets in Ukraine. Bulletin of Taras Shevchenko National University of Kyiv. Economics, 10 (187), 20–27 [in Ukrainian].
24. Obolens`ky`j, O. Yu., Soroko, V. M. (2005). Development of a system of indicators for monitoring the activities of public authorities. University scientific notes, 3,
32.1–329 [in Ukrainian].
25. Savchuk, N. V. (2014). Budget priorities of Ukraine in the context of public choice. Ky`yiv: KNEU [in Ukrainian].
26. Chukhno, A. A. (2012). Selected works (Vols. 1–2). Ky`yiv: DNNU “Akademіya fіnansovoho upravlіnnya” [in Ukrainian].
27. Pretorius, C., Pretorius, N. (2008). A Review of PFM Reform Literature. London: DFID.
28. Yefy`menko, T. І. (2017). Reforming and unifying the information space of business activity. Economy of Ukraine, 5-6, 78–90 [in Ukrainian].
29. Krutova, A. S., Chumak, O. V. (2012). E-docflow in government agencies of Ukraine: present realities and prospects of development. Finance of Ukraine, 12, 112–124 [in Ukrainian].
30. IBP. (n. d.). Open Budget Survey. Data Explorer. Country Datasheet: Ukraine (UA). Retrieved from survey.internationalbudget.org/#profile/UA.
31.. Radіonov, Yu. D. (2013). Transparency of the budget system – a guarantee of its effectiveness. Investments: practice and experience, 14, 14–21 [in Ukrainian].
32.. Hladchenko, L. (2011). Transparency of public finances as a prerequisite for the effectiveness of public administration. Ukrainian Securities Market, 3-4, 35–41 [in Ukrainian].
33. Ministry of Finance of Georgia. (2013, April 17). Electronic Budget System of Georgia. Retrieved from www.pempal.org/sites/pempal/files/event/attachments/e-budget-presenta tion_eng.pdf.
34. Mackyevіch, M. et al. (2003). International standards of publicity and transparency of public finance in Ukraine’s legislation and practice. Attempt to evaluate. Warsaw: G`dans`ky`j іnsty`tut ry`nkovoyi ekonomіky` [in Ukrainian].
35. Romens`ka, K. M. (2017). Control over observance of budget legislation and its improvement. Global and national problems of economics, 16. Retrieved from www.global-national.in.ua.