Public and Municipal Finance

Journal Information
ISSN / EISSN : 22221867 / 22221875
Current Publisher: LLC CPC Business Perspectives (10.21511)
Total articles ≅ 74
Current Coverage

Latest articles in this journal

Csaba Lentner, Vasa László, Molnár Petronella
Public and Municipal Finance, Volume 9, pp 14-24; doi:10.21511/pmf.09(1).2020.02

Capital cities of the world are usually characterized by a concentration of the majority of the population and most of the public administration and economic life. Therefore, the efficiency and quality of public service delivery in their administrative territories make a difference. The study examines public service companies in Budapest, Hungary’s capital, with the focus on their sectors of activity to describe their system, which may provide good foundations for a prospective international comparison.This study explores sector-oriented reports of state- and municipally-owned public utility companies providing services within the administrative territory of Budapest and evaluates them in terms of total assets, finance, profitability and efficiency. The study looked for an answer to the question of how the tighter state regulation and control adopted after 2010 affected their management, and what influence the price regulation of consumer public utility charges, imposed since 2013, had on companies’ activities.
Olena Bulatova, Tetyana Marena, Yurii Chentukov, Tetiana Shabelnyk
Public and Municipal Finance, Volume 9, pp 1-13; doi:10.21511/pmf.09(1).2020.01

Global financial transformations provoke shifts in financial systems that can threaten countries’ economic security. Further integration of the CEE states to the global economy will be accompanied by the increasing dependence of their financial markets and economic security on global financial challenges. The study aims to identify the relationship between global and regional financial trends that shape CEE countries’ economic security and reveal the shifts in the CEE region’s economic security under the influence of global financial transformation. The global financial transformations are the object of the study. Comparative analysis of the dynamics of financial transformations in the world and the CEE countries is made using structural analysis and methods of economic and mathematical modeling of trends. Given the heterogeneity of the CEE states’ financial development, global financial transformations have different manifestations in these countries. The relationship between global and regional indicators of financial transformation proved to be ambiguous. The regional dynamics of stock market capitalization, debt securities, and external debt fit corresponding world indicators’ dynamics. The indicators of global and regional official reserves and bank assets are moving in different directions. The region’s economic security challenges are great volatility of stock market capitalization, growth of external debt burden, and uneven distribution of official reserves. The obtained results should be considered when identifying financial threats affecting the CEE countries’ security and developing relevant policies for shaping the region’s efficient financial system.
Julia Glushchenko, Natalia Kozhalina
Public and Municipal Finance, Volume 8, pp 104-111; doi:10.21511/pmf.08(1).2019.09

Effective system of local self-government is a key to the successful development of a democratic state. It should be aimed at ensuring the effective performance of functions by the authorities, creating environment for obtaining quality services by citizens, and introducing and expanding the system of local taxes.Local taxes make the financial basis for the activities of local self-government bodies. However, nowadays, the lack of their volume and revenue instability are considered as a matter of national concern. Funding of state delegated powers, which is mainly due to transfer payments, is characterized by the delayed receipt of revenues and the lack of revenue in terms of targets, thereby creating problems with financing from local budgets.The article investigates the essentials of local taxation in the system of local budgets in Ukraine. It also summarizes methodological approaches to determining the nature of local taxes, clarifies their fiscal role in the local tax system and local budgets, and analyzes the existing practice of formation and implementation of local taxes in local budget revenues. Besides, prospective lines of improvement of the local taxation system are investigated and recommendations for its development are elaborated. Also, the subject to reform of the system of tax and budgetary relations was substantiated; changes in some administration mechanisms, the list expansion due to environmental fees and strengthened control over the unshadowing of small and medium businesses were offered.
Ievgen Balatskyi, Volodymyr Lavryk
Public and Municipal Finance, Volume 8, pp 112-119; doi:10.21511/pmf.08(1).2019.10

The article is devoted to studying the impact of different social and economic indicators on defining the population’s tariff burden for housing and utilities services. The article analyzes the housing and utilities services provision system in Ukraine. It is noted that the majority of such companies are communally owned. The effect of different factors on defining the population’s tariff burden was found. The impact was studied, and the need for considering the organizational, economically oriented, and social factors when defining the housing and utilities services tariffs was substantiated. The housing and utilities services tariff policy system, the procedure of the tariffs’ structure developing, which is formed from economically reasonable costs of service provider’s operating and financial activity (full target prime cost) and part of income, were studied. The financial relationships between the housing and utilities companies with budgets of different levels, first of all with local budgets, and state target funds; financial and credit institutions, and insurance companies, etc. were analyzed.
Fedir Zhuravka, Hanna Filatova, John O. Aiyedogbon
Public and Municipal Finance, Volume 8, pp 120-127; doi:10.21511/pmf.08(1).2019.11

The paper explores theoretical and practical aspects of forecasting the government debt in Ukraine. A visual analysis of changes in the amount of government debt was conducted, which has made it possible to conclude about the deepening of the debt crisis in the country. The autoregressive integrated moving average (ARIMA) is considered as the basic forecasting model; besides, the model work and its diagnostics are estimated. The EViews software package illustrates the procedure for forecasting the Ukrainian government debt for the ARIMA model: the series for stationarity was tested, the time series of monthly government debt was converted into stationary by making a number of transformations and determining model parameters; as a result, the most optimal specification for the ARIMA model was chosen.Based on the simulated time series, it is concluded that ARIMA tools can be used to predict the government debt values.
Liudmila Bovsh, Larysa Hopkalo, Rostom Beridze, Alla Okhrimenko
Public and Municipal Finance, Volume 8, pp 94-103; doi:10.21511/pmf.08(1).2019.08

Nowadays, the investment flows define the prospects of development of the economic system of any level, as they give the innovative opportunities and are the instrument of compliance in the financial and legal field. Taking into account the significant resource potential of the Ukraine, it is important to study the industries-catalysts, able to mobilize the financial resources, to activate the development of infrastructure and to become an impetus for the development of the specific location and the regions as a whole, which a priori stimulates meeting the social needs. This study aims to analyze the parameters of social effectiveness of investments in the hospitality business, which creates the multiplicative effect in the territories’ development systems, involving many related industries, which are the donors for territorial communities financing, in the creation of the concept-product. As a weighty proportion in the territorial community’s GDP, the usefulness of the investments in the hospitality was analyzed through the lens of sociality, which nowadays acquires the signs of non-material asset in implementing the projects, as it ensures the communicative and information interaction, harmonizes the relationship between the investors, recipients of investments, local territorial community, and society.
Inna Shkolnyk, Tetyana Melnyk, Yuliia Havrysh, Andrii Ivanchenko
Public and Municipal Finance, Volume 8, pp 73-82; doi:10.21511/pmf.08(1).2019.06

Transparency in public and local finance is one of the most important factors in building a democratic society with high level of public confidence in the government. Democratic shifts in a country will only take place if citizens perceive the country’s government and local self-government as fully transparent and controlled by them. Citizens will be able to support and cooperate with the government if it informs them of all public activities: decision-making, financial reporting, planning, local budget expenditures, etc. Transparency in the formation and use of local financial resources is the most sensitive issue.Local finance transparency has been studied from the perspective of 21 online portals of local authorities from four Ukrainian regions, geographically remote in the context of two main blocks, namely, the state of public procurement and the budget process. The portals of Lviv, Vinnytsia, Sumy, Mykolaiv administrative centers and the city of Kyiv were identified in each region (oblast), and in each oblast, four cities with the district status, which are the largest by population, were identified. Significant discrepancies in local finance transparency have been identified, as portals of regional centers and a small number of districts have high levels of transparency. The vast majority have low transparency in local finances. In addition, the level of community involvement in the regional development problems through social networks was analyzed. The population of small cities was found to be more active. Most local governments should pay attention to the low level of portals in terms of making them user-friendly.
Оlga Liuta, Borys Mershchii
Public and Municipal Finance, Volume 8, pp 83-93; doi:10.21511/pmf.08(1).2019.07

The introduction of fiscal policy transparency practices in the contemporary local financial management system is one of the prerequisites for increasing the socio-economic development of regions. Creating a transparent budget environment contributes to a faster and more effective solution to the region’s current problems. The lack of a sufficient level of budgetary transparency is a consequence of poor public interest consideration, which impedes the people’s realization of their own democratic aspirations and freedoms.The article is aimed at developing scientific and methodological approach to assessing the state of social and economic development of a region and comparing the estimates with the regions’ transparency levels for 2016–2018. Integral assessment of socio-economic development consists of four stages. It has been found out that the level of socio-economic development of regions does not correlate with the transparency level of regional policy. Public finance transparency assessment of Sumy city has shown that its population needs a higher level of information disclosure, use of the latest information channels, and creation of convenient forms of involvement in the budget process. The transparency evaluation results in the areas of budgeting, public procurement, disposal of property of the territorial community, etc. have been investigated. Besides, directions for improving Sumy local authorities’ information policy are proposed to increase its transparency.
Viktoriia Koilo
Public and Municipal Finance, Volume 8, pp 54-72; doi:10.21511/pmf.08(1).2019.05

The present study investigates the Norwegian maritime industry in terms of its economic activity during the period 2001–2018. The purpose of the study is to determine the financial state and to conduct the cluster analysis of the companies which belong to the Blue Maritime Cluster of Møre and Romsdal County.The paper presents a structural analysis of key financial indicators of the maritime industry within four major segments: shipping companies, shipyards, ship equipment manufactures, and maritime design and service providers. The analysis sheds light on the impact of the 2015–2017 offshore crisis on the Norwegian maritime cluster activity, which makes up the essential components of the maritime industry.The author suggests using Harrington’s desirability function to measure the firms’ financial state of two main segments (shipping companies and shipyards) that belong to the Blue Maritime Cluster of the Norwegian North-Western coast, which remains the most important area in Norway for shipbuilding activities. The obtained results reveal that during the analyzed period (2001–2018), companies had a satisfactory level of financial sustainability (with the peak in 2002 for shipping firms and in 2011 for shipyards). Nevertheless, there were several fluctuations and the most significant troughs were fixed after 2014. Moreover, it was defined that government policy plays an important role in an increase in the productivity, competitiveness of the maritime industry and supports more environmentally friendly shipbuilding.
Alexey Plastun, Inna Makarenko, Yulia Yelnikova, Diana Bychenko
Public and Municipal Finance, Volume 8, pp 44-53; doi:10.21511/pmf.08(1).2019.04

This paper is devoted to the comparing stock portfolios of the largest conventional and responsible Ukrainian companies as the basis for substantiating the structure of an optimal investment portfolio in the current conditions of development of the financial market of Ukraine. The empirical basis of the research was the data of quotations of shares of 6 most liquid conventional and 6 responsible companies in the Ukrainian and Warsaw exchanges. The methodological basis of calculations was the classic Markowitz portfolio optimization model. The key hypothesis of the research was to check that the conventional investment portfolios of Ukrainian companies outperform the responsible investment portfolios by their parameters (return, risk). This hypothesis was rejected. The obtained results have not only theoretical significance – both the rationale for the threat of responsible investment in Ukraine and the applied value for market participants in terms of investment decisions making, taking into consideration the ESG criteria, and the formation of investment portfolios from shares of the responsible companies, the key parameters of which exceed the conventional portfolios.
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