Home  Journals  National Interests: Priorities and Security  7(340) - 2016 July

Budgetary corruption risk

Vol. 12, Iss. 7, JULY 2016

Article PDF Version

Received: 2 March 2016

Received in revised form: 21 March 2016

Accepted: 16 May 2016

Available online: 28 July 2016

Subject Heading: THREATS AND SECURITY

JEL Classification: H11, H50, H83

Pages: 192-204

Importance The article discusses the issue of budgetary corruption risk as a stand-alone multifactor risk, which can be observed at all stages of the budget process.
Objectives The paper aims to identify the risk-contributing properties of corruption, the impact of corruption on a budget, and specify authorities for budgetary corruption.
Methods Using the methods of comparative analysis, I indicate the sequence of the fiscal corruption risk development.
Results I present my own palliative-care concept to deter corruption at an acceptable level. The analysis of 20 major power authorities shows that only less than 1/3 of the authorities are indirectly involved in the formation and change in the level of fiscal corruption risk.
Conclusions and Relevance Instead of achieving the goal of complete eradication of budgetary corruption deadlock risk, it is necessary to focus on finding ways to control the budget, taking into account such risks. Estimation of the fiscal corruption risk to practically use it in the budget process involves a study of the potential conditions for this risk in a particular region or municipality in terms of all the powers of the authorities.

Keywords: budget, risks, corruption, factors, budgetary corruption

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