Improving the Efficiency of Budgeting in Industrial Enterprise: The case of Russia, Italy, and the Middle East

The study improved budgeting efficiency at industrial enterprises with evidence from Russia, Italy, and the Middle East. In the era of contemporary globalization and technological advancement, a budgeting system holds paramount significance in the effective management of the financial operations and activities, enhancing the overall efficiency of the firm's cash management, mitigating the risk of finance misallocation, and improving the overall financial performance of the enterprise. However, despite its effectiveness, there is a lack of evidence supporting budgeting automation and its efficiency in managing industrial enterprises. More so, limited theoretical and practical relevance is found in the context of Russia, Italy, and the Middle East. This research intended to fill the existing research gap where a qualitative research design was opted. Primary data were collected from the budgeting heads of 3 pharmaceutical firms, each located in Russia, Italy, and Iran. In-depth interviews with 3 budgeting heads identified that the conventional incremental budgeting system needed amendment and replacement with a consolidated and contemporary yet flexible approach to bring radical improvements at the macro-environment level within the industrial enterprise. The key findings led to the development of a model to improve budgeting efficiency, comprising three components: information and analytical/accounting support for budgeting, production accounting information, and a combination of the regulated operation prices. The consolidation of these three components can yield budgeting efficiency

The role of chains in the Russian retail sector

Over the recent 15 years, Russian retail sector has moved from independent stores to chain structures since such trade organization is more competitive due to a single procurement policy, economies of scale, more developed logistics, own distribution centers, greater brand recognition, etc. However, the increase in the market power of retail chains is often considered as a threat for the free market and competition. This work represents an attempt to determine the degree of concentration on the Russian food retail market within the context of economic downfall, as well as the competitiveness of such forms of business organization as retail chains. The goal of the study is to test the research hypothesis that in the context of the Russian economy’s recession some players leave the food retail market, thereby increasing the market concentration, while the market power of retail chains that are more competitive increases. To test the hypothesis of the study, relevant statistical data were analyzed for the period of 2010-2015. The estimation of the monopolization indicators made it possible to make conclusions about the concentration in the industry. The following indicators for the Russian Federation were analyzed: distribution of retail trade turnover by forms of trade; the share of retail trade networks in the formation of retail trade turnover; and the turnovers of major food retailers. The concentration indices were calculated as well. The role of mergers and acquisitions in the retail food market as a factor of increasing the concentration was highlighted herein. The players leaving the market were specified. According to the results of the study, two trends have been identified: The share of retail chains on the retail food market increased and the market concentration in the sector divided by retail chains increased.peer-reviewe

The Activities of Public Authorities of the North-West Federal District to Ensure Information Security

The article is considered the activities of public authorities of the North-West Federal District to ensure information security. Highlights the issues of formation and functioning of the information security system in the North-West Federal District. The main attention is paid to the state information systems, control and monitoring of security information by the FSTEC Office for the North-West Federal District

Federal Budget and State Fiscal Policy: Macroeconomic Adaptation until 2025

The article examines the modern concept of the state fiscal policy in Russia and the possibilities of its implementation through the federal budget in the face of new global challenges. To this end, the authors assessed the resource base of the federal budget of the Russian Federation, as well as the adequacy of measures of fiscal regulation of the current economic situation. In this regard, the authors evaluated the feasibility of the initial macroeconomic indicators underlying the parameters of the federal budget for 2023–2025, primarily its revenues, and the risks of their possible change. The authors associate the key risks of failure to achieve the stated goals of the budget and tax policy for the period 2023–2025 with a sharp reduction in the resource base of the federal budget, especially its oil and gas revenues in the context of worsening geopolitical tensions and increasing sanctions pressure on the Russian Federation. The study focuses on the justification of approaches to minimize the negative consequences of external shocks both for the subjects of the Russian economy and for public finances. In the course of the study, the authors used the methods of statistical data processing, factor modeling, regression analysis and expert evaluation. The scientific novelty of the study lies in the assessment of the impact of new global challenges on the balance of the Russian federal budget and substantiation of approaches to transform fiscal regulation measures in response to these challenges. The practical significance of the study lies in the possibility of using its results in the development of state fiscal policy in the medium term under the conditions of dramatic changes in the scenario conditions of formation of the federal budget

Model for integrating monetary and fiscal policies to stimulate economic growth and sustainable debt dynamics

This article examines the main integration trends of the state's monetary and fiscal policy in influencing economic growth and maintaining the sustainability of public debt. It is argued that the relationship between these trends of macroeconomic regulation is predetermined, on the one hand, by the potentially negative impact of fiscal expansion from the point of view of inflation, and by the negative impact of a likely state default in failing to refinance the debt from the Ministry of Finance, on the other hand. The paper studies the selected array of statistical data using the fiscal policy multipliers concept, the relationship between the effect of increase/decrease in budget expenditures, the slowdown in economic activity and the efforts by the Central Bank to offset fiscal measures, on the one hand, and the ratio of an increase/decrease in budget revenues and debt expenditures used to finance the budget investments, on the other hand. It is revealed that the investments are effective if implementing budget expenditures in the presence of the GDP gap and unrealized expectations of economic agents, while reducing spending in such a situation will intensify the recession. The GDP growth determined by these investments should provide the tax effect sufficient to cover the expenses. Otherwise, there can be negative effects of debt that establishes the need for measures to refinance public debt by the Central Bank. The conclusions of the paper can be used to assess the possible integration of monetary and fiscal policy based on various states.peer-reviewe

The country's economic growth models and the potential for budgetary, monetary and private financing of gross domestic product growth

This article examines the financing of GDP growth within the framework of catch-up, evolutionary and dynamic models of economic development. Methods/statistical analysis: using the principles of the Solow model and the Cobb-Douglas function, an analysis of the nature of the models has been carried out, considering the processes of capital accumulation, the rate of growth of the workforce, and various aggregate factor productivities. With the help of historical logic and statistical evaluation, examples of countries relating to each of the models examined are reviewed. Based on the analysis, the main ways of financing economic growth are noted: both the state ones, due to budgetary and monetary policy measures, and private ones. It has been proven that with the transition from catch-up to an evolutionary or dynamic model, the role of the state as a centralizing force is diminishing. At the same time, the specificity of a dynamic model is due to the country's objective ability to be among the technological leaders, which is predetermined by the high values of current GDP, per capita GDP, and population size. Countries with an evolutionary model of development are constrained in their ability to maintain a comparable pace of development only within separate "growth points". The main result of the work is the assessment of Russia's potential from the viewpoint of one of the models considered, based on a comparative analysis of several capital indicators, as well as a logical analysis of data on the level of GDP and population with other countries. This makes it possible to make recommendations for financing the country's GDP growth in the medium to long term. Scope/Improvements: The findings can be used in the development of Russia's financial and economic strategy up to 2030.peer-reviewe

Development and Implications of Controlling in the Public Sector

Controlling is essential for public organizations to deliver optimal performance. However, the existing literature lacks sufficient knowledge to help organizations implement better strategies to enhance control. Therefore, this study examined the concept of control in the public sector, its impact on organizational efficiency, and a key focus on implementation. This study adopted a mixed approach (qualitative and quantitative) to study control in the public sector. The literature review was used to gather qualitative data, and a survey was conducted among the managers working in Russian public organizations to determine their responses to controlling practices. The results were compared and analyzed to provide implications and recommendations. It was noted through the results that control in public organizations depends on various factors like controlling approaches and tools, organizational culture, the autonomy of management, and functional control of organizations. Each of these aspects contributes positively toward control and improves public organizations’ efficiency. Therefore, these aspects should be the core focus of public organizations to ensure greater control and efficiency. This research targeted this area to bridge the gap and determine the concept of controlling the Russian public sector. However, this research also has a limitation in that it has surveyed only 102 managers from different Russian public organizations. Doi: 10.28991/ESJ-2023-07-01-015 Full Text: PD

Effectiveness of Students' Motivation Factors in the Competency-Based Approach: A Case Study of Universities in Russia and Indonesia

The study aimed to explore the influence of motivation factors on the development of professional competencies using Russian and Indonesian institutions of higher education as case studies. In pursuit of this objective, quantitative survey methodology was incorporated, and surveys were conducted during November and April of the 2018/2019 to 2021/2022 school years. The questionnaire was developed with a 10-point rating scale, aimed at addressing the development of students' professional competencies and the factors that motivate learning and competency development. Using the questionnaire, the level of professional competency development of students in Russian and Indonesian universities has been empirically analysed. The results of the study supported the spiral nature of students' professional competencies development, showing that the development of professional competencies follows a progressive and non-linear nature of component development. These results confirm that the process of professional competency development is structurally divided into separate, relatively independent stages reflecting sequential and gradual progression. The positive character of the influence of the balanced development level of intrinsic and extrinsic motivation factors on the formation of students' professional competencies has been established. The results of the research may prove useful for educational institutions and public administration bodies for the development of effective mechanisms for students' motivation within the framework of competency-based approach implementation in higher education. Doi: 10.28991/ESJ-2022-06-03-012 Full Text: PD