Effective Budgetary Control System:A Regression Model for Indian Listed Companies

Budgetary control system is a sin quo non for every business irrespective of whether it is small,medium or large.It is used for forecasting,fixing the responsibility of the departments,and the effective utilization of resources.It in turn leads to increase in the productivity,profitability and return on investment.Budgetary control system helps the senior managers to ensure that spending limits are adequate.Budgetary control system becomes one of the most vital and critical area of business management.Presently,much attention has been given to improving of budgetary control and planning and their interrelationship in developing countries including India.Two-way analysis is made in this paper:One is developing predictor model for an effective budgetary control system for listed companies in India and the other is the analysis on the quality reporting system for financial statements especially budgetary control system.The method of research is empirical which tests the feasibility of solution using empirical evidences based on the statistical applications.The result of the current study shows that effective budgetary control factors are prominent in determining the budgetary control system in Indian listed companies and have significant correlation between dependent and independent variables.The study suggested initiating steps for using budget as a tool for optimum use of available resources,for avoiding conflicts among departments while allocation of resources and for increasing the inspirational quality of the budget for budgetary control.

An Empirical Study on Budgetary Slack, Operational Efficiency, and Transfer Value

Budgetary slack directly impairs a firm＇s budgetary management. Budgetary slack at a firm＇s business unit level makes the firm level budget like a building on sand. However, it is difficult to detect the existence and to evaluate the extent of budgetary slack at＇a firm＇s business unit level. Starting with the five-year historical data of a service delivery center in a U.S. Fortune 500 firm, this research develops a comprekensive approach for probing and assessing the budgetary slack in a firm＇s business units. The approach leverages operational efficiencies and transfer values of business units of a firm＇s internal transfer system. It also contributes to evaluating the rationale of the budget of a firm＇s business unit in the budgetary approval process.

Are Disasters a Risk to Regional Fiscal Balance?Evidence from Indonesia

Indonesia is an archipelago country and is fairly vulnerable to disasters. While disasters generally affect government revenue and expenditure, their effects likely vary by country. This study examines the effect of disasters on the fiscal balance, revenue, and expenditure of local governments. We used panel data and fixed effects methods to estimate the degree to which disaster severity influences budgetary solvency at the district and provincial levels in Indonesia between 2010 and 2018. This study revealed that disasters can strain fiscal balance at the district and provincial levels due to a decrease in own-source revenue and an increase in social assistance expenditure, capital expenditure, consumption expenditure, and unexpected expenditure. The district expenditure most threatened by disasters is consumption expenditure, while the provincial expenditure most threatened is unexpected expenditure. We also found that an increase in capital expenditure can lead to financial burden due to delays of planned projects or post-disaster reconstruction. Based on these findings, it is clear that some forms of insurance or other financing schemes are necessary to mitigate the adverse impacts of disasters on regional fiscal balance.

Chinese decentralization and income inequality between urban and rural residents--An empirical study based on the dual dimensions of internal and external budget

The paper firstly explains the mechanism of decentralization on income inequality from two theoretical dimensions of internal and external budget.Based on the re-measurement of income Gini coefficient and Chinese decentralization level,this paper establishes panel data model from national and regional perspective to empirically investigate the impact of Chinese decentralization on income inequality between urban and rural residents.Firstly,the promotion of budgetary income decentralization is conductive to reduce income inequality of urban and rural residents whether it is from the national or sub regional.Second,although the promotion of budgetary expenditure decentralization exacerbates the urban-rural income inequality in the national level,it could obviously reduce the urban-rural income inequality in the midwest with relatively low level of budgetary expenditure decentralization.Thirdly,the impact of extra-budgetary decentralization on income inequality is consistent,no matter in the whole country,in eastern or in western regions.This means that the extra-budgetary income decentralization makes the income inequality between urban and rural residents worse while the extra-budgetary expenditure decentralization reduces the income inequality between urban and rural residents with different degrees.Fourthly,the transfer payment,years of schooling and urban unemployment rate are conductive to narrow the income inequality between urban and rural residents while the impacts of economic development,urbanization and opening degree are obviously different in different regions.The above conclusions can not only be used for reference to further perfecting and reshaping the fair efficiency mechanism of Chinese decentralization,but also indicates the direction of the new fiscal and tax system reform.