scholarly journals Fiscal Rules, Creative Accounting and Fiscal Transparency: An Evaluation on the Transition Economies

2015 ◽  
Author(s):  
İlter Ünlükaplan ◽  
Volkan Yurdadoğ ◽  
Ebru Canıkalp
Keyword(s):  
Public Finance ◽  
Good Governance ◽  
Fiscal Rules ◽  
Accounting System ◽  
Budget Deficits ◽  
The Public ◽  
Fiscal Transparency ◽  
Government Accounting ◽  
Creative Accounting ◽  
The Relationship

An anonymous idea is observed in the public finance literature that includes where fiscal rules, i.e numerical rules on the fiscal indicators, are strict and stringent, policy executives will have incentives to recourse to creative accounting implementations to overcome these numerical limits. Creative accounting is applied for demonstrating economic, especially fiscal indicators better than the originals to reach the necessary fiscal limit, even if they are primarily conducted by private firms. Many countries applied these illusory implementations to hide their reported budget deficits especially in the last global crisis period. With this manner, creative accounting violates the basic principles of governance in public finance. In this context, governments should have to establish statistical classification structure and government accounting system that aims to prevent creative accounting. With this dimension, fiscal transparency will prevent from creative accounting implementations. In this study, the relationship between fiscal rules and creative accounting on the public finance administration level will be determined and fiscal transparency suggestions that prevent these frauds in the economies will be evaluated. As a result, the practice of good governance in public finance should be implemented to provide financial transparency. In addition, the reforms about transparency in the legislation should be consider as an important proposal.

scholarly journals Debt finance as a public phenomenon: conceptual basics and prospects of democratization

2019 ◽  
pp. 35-50
Author(s):  
Olha Kyrylenko ◽  
Andrii Derlytsia
Keyword(s):  
Public Finance ◽  
Public Debt ◽  
Institutional Environment ◽  
Government Debt ◽  
Debt Management ◽  
Budget Process ◽  
Budget Deficits ◽  
The Public ◽  
Debt Finance ◽  
The Individual

Introduction. Issues of budget deficits, public credit and debt form the sphere of debt finance – a model established in a particular country for ensuring the balance of the budget, the organization of government borrowings, the system of public debt management in order to influence the development of the economy and the functioning of public finance. Methods. The methods of abstraction, comparison, institutional analysis and idealization have been used. Results. The study draws attention to the microeconomic fundamentals of debt finance, considering them through the prism of the individual interests. It has been found out that the developed Western countries are characterized by the public nature of debt finances as a result of the evolutionary democratization of public debt – the accessibility of government debt operations to the general public. It is revealed that due to a number of institutional restrictions, the democratization of this sphere in Ukraine has not been fully implemented yet. It is proved that the public debt manifests the same power as pure public goods: the indivisibility in consumption and the impossibility to exclude from the debt burden, which enable its study as public bads. The key features that determine the social nature of debt finance in developed democratic countries are revealed. It is proved that the determinants of debt finance are both economic and political and institutional imbalances, not only in the area of public finance, but also at the level of economic entities. The key components of the institutional environment of the functioning of debt finance are considered: political decision- making mechanisms, procedures of the budget process, the institutional organization of the financial market. It is argued that one of the key shortcomings of the domestic practice of servicing domestic public debt is the insignificant share of debt owned by citizens. Conclusions. The disadvantages and obstacles of democratization of the model of borrowing in Ukraine are studied in the paper. A promising mechanism of financial inclusion of the population in transactions with government debt is proposed.

Accrual Basis Landscape: The Absence of Political Will in Preventing Dysfunctional Behaviour in Indonesia

2018 ◽  
Vol 3 (3) ◽  
pp. 77-83
Author(s):  
Syarifuddin Syarifuddin
Keyword(s):  
Public Sector ◽  
Local Governments ◽  
Good Governance ◽  
Jel Classification ◽  
Government Officials ◽  
Accrual Accounting ◽  
The Public ◽  
Creative Accounting ◽  
Critical Phenomenology ◽  
Accrual Basis

Objective - This research aims to reveal the failure of accrual accounting to create good governance and clean government in local governments in Indonesia. Additionally, the research seeks to examine the increase in accrual based rapid growth in Indonesia and the instance of corruption among government officials. Methodology/Technique - In connection with this objective, the study explains the practical perspective of political intervention during the adoption of accrual accounting and examines the role of the community in the implementation of accrual accounting using a critical phenomenology method. Findings - The findings of this study show that accrual-based accounting encourages deviant behaviour within the public sector and hence, good governance and clean government cannot be achieved. Accrual basis in this regard becomes a means for actors to conceal fraud by exploiting the weaknesses of accrual-based accounting to allow for creative accounting. Novelty - This study uses a qualitative method to describe the implementation of accrual-based accounting in local governments in Indonesia, which is a new approach to this phenomenon. Type of Paper: Empirical Keywords: Accrual; Accounting; Public Sector; Good Governance; Clean Government; Indonesia. JEL Classification: M10, M14, M19

Using Web Sites to Improve Fiscal Transparency

2012 ◽  
pp. 232-260
Author(s):  
Tolga Demirbas
Keyword(s):  
Web Sites ◽  
Public Management ◽  
New Public Management ◽  
Good Governance ◽  
Essential Element ◽  
Public Administrators ◽  
Governance System ◽  
The Public ◽  
Fiscal Transparency ◽  
New Public

Fiscal transparency today is considered as an essential element of both good governance and e-governance. Therefore, in the new public management and budgeting reforms made by governments, it is clearly observed that fiscal transparency is one of the key elements. E-government technologies, and especially the internet, are supportive to the efforts on the part of governments offering unprecedented opportunities to public administrations enabling the dissemination of fiscal information and improving the e-governance system. In Turkey, where there is the tradition of Continental Europe, the reforms made through new laws in early 2000 contain various legal and institutional regulations to improve fiscal transparency and encourage the public administrators to use websites in an attempt to enhance fiscal transparency. This chapter, within the context of evaluating the endeavors in question, examines the websites of municipalities in Turkey in terms of fiscal transparency and eventually presents some suggestions for the improvement of the e-governance system.

scholarly journals Due liabilities of territorial self-government units – the scope of disclosures

2020 ◽  
Vol 108 (164) ◽  
pp. 9-22
Author(s):  
Dorota Adamek-Hyska ◽  
Iwona Franczak
Keyword(s):  
Public Finance ◽  
Public Debt ◽  
Research Methodology ◽  
Statistical Tests ◽  
Statistical Significance ◽  
Financial Statement ◽  
Legal Regulations ◽  
The Public ◽  
The Relationship ◽  
Non Parametric

The article is an analysis of disclosures of due liabilities in the system of reporting used by territorial self- government units. The due liabilities (i.e., liabilities that have not been settled on time or liabilities that are past) of the units in question infringe legally regulated principles of managing public means, i.e., they are a factor that results in the loss of financial liquidity, and they infringe discipline of the public finance. Due liabilities are also a debt that is included in public debt. The article includes analyses of budget financial state- ments that refer to the expenditure plans and financial operations of territorial self-government units in the Silesian Province in the period 2016-2018. The research methodology was adjusted to the variables and is based on non-parametric statistical tests. The ANOVA Kruskal-Wallis test by ranks was used to test the statistical significance of differences between the distribution of a variable that describes the relationship between due liabilities to total liabilities and a selected nominal variable. Legal regulations and relevant public finance literature and budget financial statement reporting literature were also subject to this research.

scholarly journals MEKANISME QUR’ANI PENGELOLAAN KEUANGAN PUBLIK

2017 ◽  
Vol 22 (2) ◽  
pp. 345
Author(s):  
Rosidin Rosidin
Keyword(s):  
Public Finance ◽  
Role Model ◽  
Good Governance ◽  
Core Competencies ◽  
Economic Activities ◽  
Social Functions ◽  
The Public ◽  
Finance Management ◽  
Language Analysis ◽  
Alternative Solutions

Abstrak Pengelolaan keuangan publik merupakan amanah yang harus diemban dengan penuh tanggung jawab. Problematika menyangkut pengelolaan keuangan publik harus segera dituntaskan dengan menerapkan aneka alternatif solusi, baik didasarkan pada studi teoretis, empiris maupun normatif. Tulisan ini bermaksud menyingkap kandungan al-Qur’an terkait mekanisme pengelolaan keuangan publik melalui operasionalisasi metode tafsir tarbawi yang melibatkan tiga tahap teknik analisis, yaitu kebahasaan (lughawi), isi (tahlili) dan kependidikan (tarbawi). Signifikansi studi normatif ini adalah memberikan nuansa aksiologis, sehingga pengelolaan keuangan publik didasarkan pada pertimbangan halal-haram, adil-zhalim, baik-buruk, maslahat-mafsadat, dan sistem nilai Islami lainnya. Nuansa aksiologis inilah yang menjadi distinction antara pengelolaan keuangan publik yang Islami dengan yang non-Islami. Mekanisme Qur’ani pengelolaan keuangan publik yang ditawarkan dalam tulisan ini memuat tiga hal pokok. Pertama, pentingnya relasi korelatif yang harmonis antara pihak pengelola (imam) dengan publik (umat) dalam implementasi kebijakan yang baik, dengan didasarkan pada prinsip good governance, melalui program-program dinamis-kontekstual berbasis kerjasama Islami (ta’awun dan musyarakah) yang melibatkan pihak pengelola dengan publik. Kedua, implementasi sikap moderat melalui tiga model aktivitas ekonomi, yaitu pengelola menyeimbangkan aspek sosial-insaniyah dan spiritual-ilahiah dalam pengelolaan keuangan publik; pengelola terlibat aktif dalam realisasi fungsi sosial keuangan bagi publik; serta pengelola menjadi teladan (role model) bagi publik dalam hal gaya hidup hemat. Ketiga, pengelola meneladani empat kompetensi utama Nabi Yusuf AS yang terbukti berhasil menjalankan amanah sebagai pengelola keuangan publik, yaitu kompetensi Makin (berwenang), Amin (terpercaya), Hafizh (hemat) dan ‘Alim (cermat).    Kata Kunci: Pengelolaan, Keuangan, Publik, dan Qur’ani   Abstract Public finance management is a duty that must be carried on with full responsibility. Problematics concerning public finance management must be resolved by applying a variety of alternative solutions, based on theoretical, empirical and normative studies. This paper aims to examine the verses of the Holy Qur'an that related to public finance management. This paper based on Tafsir Tarbawi method that involves language analysis (lughawi), content analysis (tahlili) and Islam education analysis (tarbawi). The significance of this research is to provide an axiological shades, so that the public finance management always consider halal-haram, fair-unfair, good-bad, advantage-disadvantage, and other Islamic value system. This axiological shades is the distinction between Islamic and non-Islamic public finance management. This paper proposes three main points of Qur’anic mechanism of public finance management. First, the importance of harmonious relationship between government (imam) and public (ummah). Therefore, government have to manage public finance based on the principle of good governance, through implementation of Islamic cooperation programs (ta’awun and musyarakah) between government and public. Second, implementation of moderate life style on economic activities through three models: government have to balance social and spiritual aspects in public finance management; government actively attempt to realize social functions of public finance; and government become a role model for public in terms of frugal lifestyle. Third, goverment emulate the four core competencies of Prophet Joseph. He is a role model of successful figure in terms of public finance management, because of his competencies, those are Makin (competent authorities), Amin (trustworthy), Hafiz (protector) and ‘Alim (knowledgeable).   Keywords: Management, Finance, Public, and Quranic

scholarly journals The Role of Accounting and Internal Control in Reducing Bureaucracy in the Public Sector

2016 ◽  
Vol 5 (4) ◽  
pp. 46 ◽  
Author(s):  
Luminita Ionescu
Keyword(s):  
Public Sector ◽  
Internal Control ◽  
Good Governance ◽  
Control Procedure ◽  
Electronic Signature ◽  
The Public ◽  
Financial Activity ◽  
Government Accounting ◽  
The Government ◽  
Governance Transparency

 The aim of this paper is to present the relation between efficient internal control and accounting procedures and how the internal control system could play an important role in reducing bureaucracy. Nowadays, the government accounting and control of public finances are a national and international priority, in the context refugee crisis and terrorist attacks. Modernization of the public sector accounting could accelerate the process of reducing bureaucracy by implementing accounting information system and electronic signature. The reform of the public administration in all European countries developed new control techniques and procedures in order to control public sector budget and financial activity. Efficient intern control procedure and managerial responsibility could contribute to good governance, transparency and low level of bureaucracy. 

scholarly journals Accrual accounting and public finance reforms in Hungary: the study of application in the public sector

2020 ◽  
Vol 183 (5-6) ◽  
pp. 89-105
Author(s):  
Csaba Lentner ◽  
◽  
Petronella Molnar ◽  
Vitez Nagy ◽  
◽  
...  
Keyword(s):  
Public Finance ◽  
Public Sector ◽  
Historical Background ◽  
Accounting System ◽  
The European Union ◽  
Accrual Accounting ◽  
Public Funds ◽  
The Public ◽  
Table Analysis ◽  
The Impact

Introduction. The increasing measurability of performances in the public sector in the countries of the post-soviet region, including Hungary, has come to the limelight in recent decades. Accrual accounting, adopted in Hungary in 2014 on the recommendation of the European Union, provides decision-makers with reliable information and simultaneously improves transparency in spending. Purpose and Methodology. This study focuses on the impacts and synergies of the parallel comprehensive reforms in the public finances and the adoption of the accrual accounting system. We conducted an empirical research among 2425 budgetary organisations (during June 2018 - January 2019) and analysed the correlation between the variables with cross-table analysis. Our survey covered 19.1 per cent of all the budget organisations in Hungary. Thus, thanks to the sample size the survey results analysis gives a comprehensive view of the entire country based on the real feedback regarding the implementation of the new practices. Results. In the course of the survey, the organisations were asked to describe how they were affected by the transition to the new accounting system, how they had prepared for the statutory changes and compliance, what additional tasks the adoption of the new system required of them, and how they evaluated the impacts of the application of accrual accounting after five years. The inquiry focussed on the impact this new accrual-based accounting system had on the business management of the given organisation and thus the efficient use of public funds. The results confirm that the historical background and the peculiarities of managing public funds in a country should also be taken into account during the adoption of reforms along with thorough preparation. Our research also sheds light on the fact that the successful 2014 adoption of accrual accounting could achieve its full purpose in an environment ensured by comprehensive public finance reforms and laws adopted after 2010. In other words, the precondition of enforcing the new rules of accrual accounting applied in the public sector included the reinforcement of budgetary regulation and control procedures. Conclusion. The study reports more favourable public sector procedures, proves that the adoption of accrual accounting has been justified and that the higher focus on performance and efficiency achieved through accrual accounting is important.

Using Web Sites to Improve Fiscal Transparency

2011 ◽  
pp. 171-191
Author(s):  
Tolga Demirbas
Keyword(s):  
Web Sites ◽  
Public Management ◽  
New Public Management ◽  
Good Governance ◽  
Essential Element ◽  
Public Administrators ◽  
Governance System ◽  
The Public ◽  
Fiscal Transparency ◽  
New Public

Fiscal transparency today is considered as an essential element of both good governance and e-governance. Therefore, in the new public management and budgeting reforms made by governments, it is clearly observed that fiscal transparency is one of the key elements. E-government technologies and especially the internet are supportive to the efforts on the part of governments offering unprecedented opportunities to public administrations enabling the dissemination of fiscal information and improving the e-governance system. In Turkey, where there is the tradition of Continental Europe, the reforms made through new laws in early 2000 contain various legal and institutional regulations to improve fiscal transparency and encourage the public administrators to use websites in an attempt to enhance fiscal transparency. This chapter, within the context of evaluating the endeavors in question, examines the websites of municipalities in Turkey in terms of fiscal transparency and eventually presents some suggestions for the improvement of the e-governance system.-

LEGAL CONDITIONS FOR THE FINANCING OF LOCAL GOVERNMENT UNITS INVESTMENTS BY PARABANKING FINANCIAL INSTRUMENTS IN POLAND

2019 ◽  
Vol 5 (1) ◽  
pp. 467-502
Author(s):  
Tomasz Wołowiec
Keyword(s):  
Public Finance ◽  
Local Government ◽  
Real Estate ◽  
Financial Institutions ◽  
Bank Loans ◽  
Municipal Bond ◽  
Financial Instruments ◽  
The Public ◽  
Creative Accounting ◽  
Bond Issues

The regulations on debt limits introduced in 2014 caused adapting by local government units two ways of proceeding. The first consists in "classic" adaptation to the provisions of the Public Finance Act, through the restructuring of budget expenditures and the devel-opment of a financial surplus, allowing for safe incurring of new obligations and possible servicing of "old" debt. The second way is what can be called the form of the "Creative accounting", involving the use of non-bank financial institutions (quasi-banks) or the use of financial operations other than bank loans and municipal bond issues. These are lease-back agreements, reverse sale of real estate, as well as unnamed agreements causing debt restructuring (e.g. subrogation, forfeiting or factoring), installment payments, as well as subsidies to the capital of municipal companies.

scholarly journals A reflection on the relationship between performance management and training in the South African public service

2017 ◽  
Vol 1 (2) ◽  
Author(s):  
P. Harry Munzhedzi
Keyword(s):  
Service Delivery ◽  
Performance Management ◽  
South African ◽  
Public Service ◽  
Good Governance ◽  
Skills Gap ◽  
The South ◽  
The Public ◽  
The Relationship ◽  
And Training

Orientation: Performance management plays a pivotal role in the realisation of many facets of public administration, including service delivery, good governance and organisational productivity through setting of performance targets and regular assessments of performance. In search of improved quality and productivity in the public service, the South African government introduced several legislative and policy interventions, including but not limited to the Public Service Act, 1994 (Proclamation 103 of 1994), Public Service Regulations of 2001 and the White Paper on Transforming Public Service Delivery of 1997.Research purpose: The main thrust of this conceptual paper was to explore the relationship between performance management and training in the South African public service.Motivation for the study: The lack of sufficient literature on the relationship between performance management and training. To also prove that the two are inseparably linked, meaning that one cannot exist without the other.Research design, approach and method: This article, which is conceptual in nature, reviewed existing literature on performance management and training in the public service extensively so as to arrive at a definitive conclusion.Main findings: The article contends that as much as training underpins the process of performance management, training is also fortified by performance management. Precisely, there cannot be performance management without training and vice versa.Practical/managerial implications: As much as training is imperative in the management of performance in the public service, such training must be need-based and it must be underpinned by performance management through identification of skills gap in the assessment of performance.Contribution: It is proposed that to enhance the knowledge, capacity, effectiveness and efficiency of the public service performance, needs-based training that seeks to close the skills gap, is developed and adequately implemented.

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