THE ISSUES OF BUDGETARY INSTITUTIONS’ PROPRIETARY FUNDS USING

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THE ISSUES OF BUDGETARY INSTITUTIONS’ PROPRIETARY FUNDS USING

Journal Title: Право та інновації - Year 2016, Vol 4, Issue 16

Abstract

In modern conditions of permanent budget deficit budgetary institutions have to find additional revenue sources or to carry out all the necessary expenses. With this aim public institutions enforced to raise their own funds. Such funds are the source of growth opportunities of budgetary institutions, of services increasing, of improving the quality of services of production and population, and of the effectiveness of employees material incentives. The issues relating to the use of own funds of budgetary institutions have recently attracted the attention of different scientists (N. Y. Yakymchuk, L. M. Chupryna, D. P. Rotar, M. I. Sidor and others). Nevertheless, the mentioned issue needs further analysis. The aim of the article is to outline the features and certain problems related to the using of own resources by such budgetary institutions as state and municipal universities, and define the ways to resolve these problems. Article’s main body. According to the p. 15, ch. 1, Art. 2 of Budget Code of Ukraine the own revenues are funds received in the prescribed manner by mentioned entities, among them: payment for services, works, grants, gifts and donations and funds from the products, property and other activities sale in the established order . Such budgetary institution’s revenues credited to the relevant special fund budget with the number of features of such funds using. As follows from Art. 13 of Budget Code of Ukraine, own revenues of budgetary institutions included in the special budget fund and the only used to clearly defined objectives. Analysis of the current budget legislation and scientific sources shows that special aspects of budgetary organizations own funds using associated with: (1) strictly intended direction of the special funds using; (2) the ability to save these funds on the special account at the end of the year; (3) the ability to place such funds at the state bank accounts; (4) the possibility of depositing the temporarily free budget funds received for paid services. Attracting own funds budgetary institution participates in relations of mobilizing of budget funds, of replenish revenues of the relevant (state or local) budget and, subsequently, in relations with the distribution and using of such funds. These relations regulates by the Budget Code of Ukraine and by number of legal acts. At the same time the current problem is not only the ability of budgetary institutions to receive budgetary funds in full extent, to attract additional (own) funds, but to ensure timely and fully its spending. Conclusions. Among the problems associated with the use of own funds of budgetary institutions we could define the following. The first, the existing inconsistency in terminology between the Law “On education” (para. 2 ch. 2, Art. 70), the Law “On banks and banking activity”, the Budget Code of Ukraine (ch.9 Art. 13) and the Act of the Cabinet Ministers of Ukraine dated August 26, 2015 №657 that approved the Order of the placement by the higher and vocational education institutions of temporarily free budget funds received from the paid services on deposit accounts (ch. 1. p.2 ). Mentioned inconsistency concerning the definition of the bank where the higher and vocational educations can open deposit accounts. The second problem is that the Cabinet of Ministers of Ukraine bu its Act dated August 26, 2015 №657 introduced additional restrictions that are not defined by the Budget Code of Ukraine. For example, regarding the refund of the special registration account of the establishment that opened in the State Treasury; transfer of funds by the Treasury bodies on the basis of availability of single treasury account.

Authors and Affiliations

О. О. Dmytryk

Keywords

special Fund budget; budgetary institutions; own funds of budgetary institutions.

EP ID EP458558
DOI -
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