Abstract: Public sector budgeting, all over the world, is underpinned by some universally accepted principles of sound budget management such as budget unity, universality, annuality, and a balanced budget. These traditional principles, though fundamental, had, in recent years, been augmented by the more modern principles of budgeting within fiscal objective, alignment with medium-term strategic plans as well as the observance of such related concepts as transparency, openness and accessibility. In this paper, we have endeavored to shed light, from literature and practice, on the meaning and purposes of such fundamental budgeting principles. We have also assessed the extent to which the Government of Ghana’s budget complies with the four traditional principles of budget unity, universality, annuality, and a balanced budget and the three out of the ten modern principles of budgetary governance of Organisation for Economic Co-operation and Development (OECD). We did so by using a qualitative method of review and analysis of existing documents and the performance assessment reports on Ghana’s Public Financial Management (PFM) measured using such frameworks as the Public Expenditure and Financial Accountability (PEFA), the Open Budget Survey (OBS) and its Index (OBI), the reports and action plans of Open Government Partnership (OGP) and the Global Initiative for Fiscal Transparency (GIFT). Other performance assessment reports that were relied on included, but not limited to, the Joint Evaluation Report of PFM in Ghana, 2001-2010, and the Joint Evaluation of Budget Support to Ghana, 2005-2015. We have, through this paper, brought to the fore the lessons that could be learned on how those budgetary principles undergird the Government of Ghana’s budget formulation, execution, accounting, control, and oversight. These lessons include, but are not limited to, the need for both scholars and practitioners in the PFM space to be aware of the impact of those principles on public sector budgeting.
Abstract: Ghana’s Public Financial Management reforms have been going on for some two decades now (1997/98 to 2017/18). Given this long period of reforms, Ghana in 2019 is putting together both a Public Financial Management (PFM) strategy and a Ghana Integrated Financial Management Information System (GIFMIS) strategy for the next 5-years (2020-2024). The primary aim of these dual strategies is assisting the country in moving beyond reforms to consolidation and sustainability. In this paper we, first, examined the evolution of Ghana’s PFM reforms. We, secondly, reviewed the legal and institutional reforms undertaken to strengthen the country’s key PFM institutions. Thirdly, we summarized the strengths and weaknesses identified by the 2018 Public Expenditure and Financial Accountability (PEFA) assessment of Ghana’s PFM system relating to its macro-fiscal framework, budget preparation and approval, budget execution, accounting and fiscal reporting as well as external scrutiny and audit. We, finally, considered what the country should be doing to achieve its intended goal of PFM consolidation and sustainability. Using a qualitative method of review and analysis of existing documents, we, through this paper, brought to the fore the lessons that could be learnt by other developing countries from Ghana’s PFM reforms experiences. These lessons included the need to: (a) undergird any PFM reform with a comprehensive PFM reform strategy; (b) undertake a legal and institutional reforms of the key PFM institutions; (c) assess the strengths and weaknesses of those reforms using PFM performance evaluation tools such as PEFA framework; and (d) move beyond reforms to consolidation and sustainability.
Abstract: The purpose of this paper is to show how state plays a
regulatory role in the relations of distribution by analyzing tax and
expenditure in Turkey. This paper has two main arguments. First,
state intervenes in economic and social life via budget policies and
steers the relations of distribution within the scope of the
reproduction of the capital accumulation and legitimacy. Secondly, a
great amount of public expenditure benefits capital owners while
state gains its tax income mainly from low and middle income
groups.
Abstract: Arising problems of countries’ public finances, social
and demographic changes motivate scientific and policy debates on
public spending size, structure and efficiency in order to meet the
changing needs of society and business. The concept of sustainable
development poses new challenges for scientists and policy-makers
in the field of public finance. This paper focuses on the investigation
of the relationship between government expenditure and country’s
economic development in the context of sustainable development.
Empirical analysis focuses on the data of the European Union (except
Croatia and Luxemburg) countries. The study covers 2003 – 2012
years, using annual cross-sectional data. Summarizing the research
results, it can be stated that governments should pay more attention to
the needs that ensure sustainable development in the long-run when
formulating public expenditure policy, particularly in the field of
environment protection.
Abstract: To date, one of the few comprehensive indicators for
the measurement of food security is the Global Food Security Index
(GFSI). This index is a dynamic quantitative and qualitative
benchmarking model, constructed from 28 unique indicators, that
measures drivers of food security across both developing and
developed countries. Whereas the GFSI has been calculated across a
set of 109 countries, in this paper we aim to present and compare, for
the Middle East and North Africa (MENA), 1) the Food Security
Index scores achieved and 2) the data available on affordability,
availability, and quality of food. The data for this work was taken
from the latest available report published by the creators of the GFSI,
which in turn used information from national and international
statistical sources. MENA countries rank from place 17/109 (Israel,
although with resent political turmoil this is likely to have changed)
to place 91/109 (Yemen) with household expenditure spent in food
ranging from 15.5% (Israel) to 60% (Egypt). Lower spending on food
as a share of household consumption in most countries and better
food safety net programs in the MENA have contributed to a notable
increase in food affordability. The region has also, however,
experienced a decline in food availability, owing to more limited
food supplies and higher volatility of agricultural production. In
terms of food quality and safety the MENA has the top ranking
country (Israel). The most frequent challenges faced by the countries
of the MENA include public expenditure on agricultural research and
development as well as volatility of agricultural production. Food
security is a complex phenomenon that interacts with many other
indicators of a country’s wellbeing; in the MENA it is slowly but
markedly improving.
Abstract: Public procurement is one of the most
important areas in the public sector that introduces a possibility for a
corruption. Due to the volume of the funds that are
allocated through this institution (in the EU countries it is between 10
– 15% of GDP), it has very serious implications for the efficiency of
public expenditures and the overall economic efficiency as
well. Indicators that are usually used for the measurement of the
corruption (such as Corruption Perceptions Index - CPI) show that
the worst situation is in the post-communist countries
and Mediterranean countries.
The presented paper uses the Czech Republic as an example of a
post-communist country and analyses the factors which influence
the scope of corruption in public procurement. Moreover, the
paper discusses indicators that could point at the public procurement
market inefficiency. The presented results show that post-communist
states use the institute of public contracts significantly more than the
old member countries of the continental Europe. It has a very
important implication because it gives more space for corruption.
Furthermore, it appears that the inefficient functioning of public
procurement market is clearly manifested in the low number of bids,
low level of market transparency and an ineffective control
system. Some of the observed indicators are statistically significantly
correlated with the CPI.
Abstract: Previous studies on political budget cycles (PBCs)
implicitly assume the executive has full discretion power over fiscal
policy, neglecting the role of checks and balances of the legislature.
This paper goes beyond traditional PBCs models and sheds light on
the case study of Japan, South Korea, and Taiwan over the 1988-2007
periods. Based on the results, we find no evidence of electoral impacts
on the public expenditures in South Korean and Taiwan's
congressional elections. We also noted that PBCs are found on
Taiwan-s government expenditures during our sample periods.
Furthermore, the results also show that Japan-s legislature has a
significant checks and balances on government-s expenditures.
However, empirical results show that the legislature veto player in
Taiwan neither has effect on the reduction of public expenditures, nor
has the moderating effect over Taiwan-s political budget cycles, albeit
that they are statistically insignificant.We suggest that the existence of
PBCs in Taiwan is due to a weaker systemof checks and balances. Our
conjecture is that Taiwan either has no legislative veto player or has
observed low compliance to the law during the time period examined
in our study.