The Impact of Fiscal Decentralisation on Local Economic Development in Serbia

Cases of financial fraud by local governments in Indonesia are on the rise, causing significant losses to the state. The weak internal control system and the apparatus’s low integrity are some well-known culprits, thus confirming the fraud diamond theory of Wolfe and Hermanson (2004). As a religious country, the potentiality of spirituality seeks to increase governmental internal control systems and regional management information systems that are still underrepresented in previous studies despite Nguyen and Crossan (2022) arguments that the infusion of virtue ethics into fraud management systems can greatly benefit from it. This article provides an empirical investigation as to whether implementing the government’s internal control system and regional management information systems might prevent fraud in Indonesian local governments, with the spiritual quotient (SQ) as the moderating factor in these relationships. This study employs a quantitative approach by collecting response data from the financial division apparatus in Indonesia. The sample was determined by the purposive sampling method and sent to the head of budget planning and treasury in Indonesia, resulting in 221 return questionnaires. The partial least squares structural equation modeling is used to analyze the direct and moderating relationships. This study reports that the implementation of the government’s internal control system and regional management information system has successfully prevented fraud in the financial reporting of local governments. The spiritual quotient strengthens the implementation of the government’s internal control system in avoiding fraud. However, the same does not occur with the regional management information system. The article concludes with discussions and implications.

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Ensuring Financial Self-Sufficience of Territorial Communities: Experience of Eu Countries

KOVAL

2022

WOF

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Introduction. The change of the administrative-territorial system at the basic level and the reform of the public administration system in Ukraine in 2014–2020 took place on the basis of the experience of the EU countries regarding the decentralization of administrative and financial powers in favor of local self-government. Today, the first stage of reform has already been completed, because territorial communities as the basic units of the administrative-territorial system have been formed throughout the territory of Ukraine, as well as redistribution of spending powers and revenue sources between different levels of management. Accordingly, the issue of ensuring financial self-sufficiency of territorial communities for the long term is being updated. Decentralization in European countries took place in different periods, and therefore, the tasks that today face the Ukrainian state and local self-government in particular, these countries have already solved with one or another measure of efficiency, which makes it possible to talk about the possibility of adapting the acquired experience to domestic realities. The purpose of the article is to study European practices of ensuring financial self-sufficiency of basic administrative and territorial formations for the further implementation of the most effective practices in domestic realities. Results. The practice of developing the public finance system on the basis of decentralization in the EU countries was studied, the difference between the levels of decentralization of territorial communities in different countries and the tendency to exceed the level of decentralization of expenses over the level of income decentralization was revealed. Emphasis is placed on the key principles of ensuring financial self-sufficiency of territorial communities in the European Charter of Local Self-Government. The existence of a financial "cushion" for territorial communities in the form of distributed resources from supranational funds is substantiated. Given the lack of such a mechanism in Ukraine, the need to study European practices for accumulating sufficient financial resources for community development is argued, including taxes on economic activity (personal income tax, corporate income tax, local business tax, property taxes on commercial real estate and land) and local borrowing.

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The Impact of Fiscal Decentralisation on Local Economic Development in Serbia

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Participatory Budgeting in Serbia

Participatory Budgeting in Serbia

Internal governance and fraud prevention system: The potentiality of the spiritual quotient

Ensuring Financial Self-Sufficience of Territorial Communities: Experience of Eu Countries

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