Instituto de Estudios Políticos y Derecho Público "Dr. Humberto J. La Roche"
de la Facultad de Ciencias Jurídicas y Políticas de la Universidad del Zulia
Maracaibo, Venezuela
Esta publicación cientíca en formato digital es continuidad de la revista impresa
ISSN-Versión Impresa 0798-1406 / ISSN-Versión on line 2542-3185Depósito legal pp
197402ZU34
ppi 201502ZU4645
Vol.40 N° 72
Enero
Junio
2022
Recibido el 14/09/2021 Aceptado el 10/12/2021
ISSN 0798- 1406 ~ De pó si to le gal pp 198502ZU132
Cues tio nes Po lí ti cas
La re vis ta Cues tio nes Po lí ti cas, es una pu bli ca ción aus pi cia da por el Ins ti tu to
de Es tu dios Po lí ti cos y De re cho Pú bli co “Dr. Hum ber to J. La Ro che” (IEPDP) de la Fa-
cul tad de Cien cias Ju rí di cas y Po lí ti cas de la Uni ver si dad del Zu lia.
En tre sus ob je ti vos fi gu ran: con tri buir con el pro gre so cien tí fi co de las Cien cias
Hu ma nas y So cia les, a tra vés de la di vul ga ción de los re sul ta dos lo gra dos por sus in ves-
ti ga do res; es ti mu lar la in ves ti ga ción en es tas áreas del sa ber; y pro pi ciar la pre sen ta-
ción, dis cu sión y con fron ta ción de las ideas y avan ces cien tí fi cos con com pro mi so so cial.
Cues tio nes Po lí ti cas apa re ce dos ve ces al año y pu bli ca tra ba jos ori gi na les con
avan ces o re sul ta dos de in ves ti ga ción en las áreas de Cien cia Po lí ti ca y De re cho Pú bli-
co, los cua les son so me ti dos a la con si de ra ción de ár bi tros ca li fi ca dos.
ESTA PU BLI CA CIÓN APA RE CE RE SE ÑA DA, EN TRE OTROS ÍN DI CES, EN
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Eduviges Morales Villalobos
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Re vis ta Cues tio nes Po lí ti cas. Av. Gua ji ra. Uni ver si dad del Zu lia. Nú cleo Hu ma nís ti co. Fa-
cul tad de Cien cias Ju rí di cas y Po lí ti cas. Ins ti tu to de Es tu dios Po lí ti cos y De re cho Pú bli co
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Vol. 40, Nº 72 (2022), 573-581
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Administrative and legal regulation
of public nancial activity
DOI: https://doi.org/10.46398/cuestpol.4072.33
Vyacheslav Tylchyk *
Tetiana Matselyk **
Viktor Hryshchuk ***
Olena Lomakina ****
Markiian Sydor *****
Yevhen Leheza ******
Abstract
The purpose of the research is the basic characteristics of the
management of nancial activity in countries such as: France,
Germany, United States of America, Great Britain, and Sweden.
The organizational structure of nancial management bodies was
studied and the participation of state legislatures in nancial policy
was emphasized. Also, a review of materials and methods was
carried out based on the analysis of documents for the regulation of public
nancial activity. The methodology included a comprehensive analysis and
generalization of the available scientic and theoretical material, as well as
the formulation of relevant conclusions. During the research, the methods of
scientic cognition were used: terminological, logical-semantic, functional,
system-structural, logical-normative, comparative. It is concluded that the
participation of all the higher powers of government is fundamental in the
formation and implementation of public policy in the eld of nance; this
requires a wide range of bodies and institutions exercising control over
nancial activities; concentration of nancial management in a single-
* Professor, Head of the Department of Administrative Law and Process and Customs Security, Doctor of
Law, University of State Fiscal Service of Ukraine, Ukraine. ORCID ID: https://orcid.org/0000-0001-
5964-3439
** Professor, Department of Financial Law, National University of the State Fiscal Service of Ukraine, 31
University Street, Irpin, 08205, Ukraine. ORCID ID: https://orcid.org/0000-0003-0354-4663
*** PhD, Director of Department of Law Enforcement Activity, State Tax University, 31 University Street,
Irpin, 08201, Ukraine. ORCID ID: https://orcid.org/0000-0003-4621-4058
**** Candidate of Law, Associate Professor, Head of the Department of Administrative and Constitutional
Law, Faculty of Maritime Law, Admiral Makarov National University of Shipbuilding, 9 Heroiv
Stalinhradu Ave., Mykolaiv, 54025, Ukraine. ORCID ID: https://orcid.org/0000-0003-4397-5978
***** Candidate of Law, Associate Professor of the Department of Administrative Law Disciplines, Law
Faculty, Lviv State University of Internal Aairs, 26 Horodotska Street, Lviv, 79007, Ukraine. ORCID
ID: https://orcid.org/0000-0002-5615-7766
****** Professor, Doctor of Science in law, Professor at the Department of Administrative and Customs
Law, University of Customs and Finance, Dnipro, Ukraine. ORCID ID: https://orcid.org/0000-0001-
9134-8499
574
Marina V. Baranova, Olga B. Kuptsova, Sergey N. Belyasov y Arturas S. Valentonis
Culture of legal techniques: key dominants in the modern Russian legal system
line ministry, as well as distribution among several ministries and a clear
division of powers between nancial management bodies, among other
aspects.
Keywords: nancial activities; management bodies; administrative
regulation; legislative bodies; international nance.
Regulación administrativa y legal de la actividad
nanciera pública
Resumen
El propósito de la investigación son las características básicas de la
gestión de la actividad nanciera en países como: Francia, Alemania,
Estados Unidos de América, Gran Bretaña y Suecia. Se estudió la
estructura organizativa de los órganos de gestión nanciera y se enfatizó la
participación en la política nanciera de los órganos legislativos del poder
estatal. También, se realizó una revisión de materiales y métodos en base al
análisis de documentos para la regulación de la actividad nanciera pública.
La metodología incluyó un análisis integral y generalización del material
cientíco y teórico disponible, así como la formulación de conclusiones
relevantes. Durante la investigación se utilizaron los métodos de cognición
cientíca: terminológico, lógico-semántico, funcional, sistema-estructural,
lógico-normativo, comparativo. Se concluye que, la participación de todos
los poderes superiores del gobierno es fundamental en la formación e
implementación de la política pública en el ámbito de las nanzas; lo que
requiere de una amplia gama de órganos e instituciones que ejercen control
sobre las actividades nancieras; concentración de la gestión nanciera
en un ministerio de una sola línea, así como la distribución entre varios
ministerios y una clara división de poderes entre los órganos de gestión
nanciera, entre otros aspectos.
Palabras clave: actividades nancieras; órganos de gestión; regulación
administrativa; órganos legislativos; nanzas
internacionales.
Introduction
While examining functioning of the nancial system in the society we
should emphasize that organization of nancial management in our state
diers somewhat from the management of the same kind in foreign countries.
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CUESTIONES POLÍTICAS
Vol. 39 Nº 71 (2021): 566-578
In the process of reforming the system of state authorities in Ukraine and
their powers it is necessary to nd new approaches to functioning of these
bodies with the purpose of their optimization, increase of their eciency,
eectiveness, social orientation, etc. A signicant importance here belongs
to experience of nancial activity functioning and management in foreign
countries characterized by high economic development, stability of nancial
policy, growing integration of nancial markets in the country, etc.
1. Literature review
Research of theoretical and practical aspects concerning formation of
nancial systems in foreign countries has found their reection in works
of such scientists as V. I. Ospishchev, who notes that the US budget system
is characterized by the stolidity of scal and tax relations between the state
and its regions. In fact, the states have equal rights in this area with the
federation as a whole, so at the federal level and in the states, there are
identically named taxes (income tax on individuals and corporations). The
most fundamental limitation on state tax rights consists in prohibition on
introduction of certain indirect taxes that impede free trade between the
states, which is prohibited by the US Constitution (Ospischev, 2008). The
author emphasizes that there is practically no direct redistribution of funds
between the states. But according to the Constitution the US Congress
has the right to nance only the “General Welfare of the USA” which also
prevents redistribution of funds between regions. The States may establish
any form of taxes, but they cannot prevent interregional economic ties,
which leads to equal tax pressure (Ospischev, 2008).
A number of researchers emphasized the importance of studying
foreign experience of nancial system development as the main condition
for improvement of the domestic nancial sector of national economy. For
example, S.Y. Konoval notes that in recent years the global trend consists
in liberalization and globalization of nancial systems and, as a result,
increased mobility of capital and increased economic risks.
That is why state regulation of nancial systems is becoming increasingly
important. However, it should be noted that the use of the world experience
in nancial system state regulation from the standpoint of its adaptation to
Ukrainian realities is insuciently studied (Burdenko, 2011).
Urgency of the article is conditioned by the necessity to reform the
system of public authorities in Ukraine, including management bodies of
nancial activities.
576
Marina V. Baranova, Olga B. Kuptsova, Sergey N. Belyasov y Arturas S. Valentonis
Culture of legal techniques: key dominants in the modern Russian legal system
2. Materials and methods
Research of materials and methods based on the analysis of documentary
sources and normative legal acts of nancial activity management in foreign
countries. The dialectical method of cognition of the facts of social reality is
the foundation where formal-legal and, rather, legal approaches are based
in many respects. The formal-dogmatic method contributed to development
of the author’s explanation of the current state, problems, and practical role
of legal technologies for further development and improvement of nancial
activity management in foreign countries. The ocially legal method gave
an opportunity to suggest directions and types of using legal technologies as
prospects of nancial activity management in foreign countries.
3. Results and discussion
Turning to a direct consideration of the purpose of our research we
propose to focus separately on the structure of nancial management
bodies in foreign countries and on interaction of nancial management
bodies with other state bodies. France is one of the countries characterized
by stable nancial system and eective interaction of state authorities
in the sphere of nancial activity. It should be noted that France with its
bicameral parliament (the Senate and the National Assembly) implements
nancial laws and the state policy by both chambers of the Parliament and
the President of France who has a considerable authority in the sphere of
dening nancial policy (France Insurance Industry, 2010).
In addition, France does not have a special body to manage nances,
that is it does not have the Ministry of Finance as a separate body, and the
function to implement the state nancial policy is entrusted to the Ministry
of Economy, Finance and Budget. This body combines various functions
in the sphere of nance, including the following: direct implementation
of nancial policy in the state, control over various nancial transactions,
certain control functions in the direct implementation of nancial policy
performed by lower authorities, etc (Leheza et al, 2018).
A characteristic feature of nancial management in France is that this
country has a large number of bodies responsible for implementation of
direct nancial policy and nancial control. In particular, a specic feature
of nancial management in France is that such management is carried
out by the highest authorities. This is conrmed by the opinion of N. Y.
Melnychuk, who notes that in France in addition to the Ministry of Economy,
Finance and Budget, there is a system of administrative inspection which
includes three inter-ministerial inspectorates: General Inspectorate of
Finance, General Inspectorate of Administration, General Inspectorate of
577
CUESTIONES POLÍTICAS
Vol. 39 Nº 71 (2021): 566-578
Social Aairs. In addition to that, the scientist named such bodies as the
Commission of Finance, Economics and Planning (National Assembly)
and the Commission of Financial and Budgetary Control (Senate), the
Commission of Financial Transparency in Political Life, which controls
declaration of incomes of participants of political life of the country - mostly
state ocials (Melnychuk, 2015).
The system of nancial management in the USA is interesting from the
managerialpoint of view. The highest governing body in the USA is the
Ministry of Finance, which is often referred to as the Treasury. Another
important body in the eld of nancial management is the Oce of
Management and Budget (OMB) under the President, which is responsible
for controlling the expenditure side of the budget (Government Finance
Statistics Yearbook, 2001).
Availability of the Oce of Management and Budget (OMB) under the
President emphasizes the role, importance and active participation of the
President of the State in the management of nancial activity. In the United
States a signicant role concerning implementation of nancial control is
assigned to the Government Accountability Oce.
On behalf of the chambers and commissions of the US Congress or
even individual congressmen, the Government Accountability Oce
may evaluate eectiveness of government programs as well as activities
performed by federal agencies; conduct special surveys and verications of
the validity of product prices; nancial and economic aspects of contracts of
the Department of Defense. Inspectors of the Government Accountability
Oce also check activities performed by the executive power inspectors. In
some cases, the checks are carried out in coordination with the investigation
bodies of the Department of Justice and other bodies entrusted with the
relevant authorities (Kyrylenko, 2015).
According to J. Scharitz activities of the Government Accountability
Oce consist in carrying out annual inspections of the state of nances of
federal agencies as well as in preparing documents and recommendations
for the President and the Congress of the USA on the basis of inspections
(Shafritz, 2003).
In addition, a specic feature of nancial management in the United
States is that in this country, nancial management is distributed between
two government bodies: The Department of Treasury and Customs and the
Bureau of Alcohol, Tobacco, Firearms and Explosives.
The US government is committed to the autonomy and independence in
performing nancial and tax policy. Thus, the nancial management bodies
include several federal bodies - the Government Accountability Oce, the
Oce of Management and Budget which are subordinated to the President
of the country There is also an advisory body in the nancial management
578
Marina V. Baranova, Olga B. Kuptsova, Sergey N. Belyasov y Arturas S. Valentonis
Culture of legal techniques: key dominants in the modern Russian legal system
system, which participates in the procedure of forming basics of nancial
and economic policy of the country. An important role in the US nancial
market is given to commodity and stock exchanges and special funds of the
United States, which function as independent nancial institutions (Leheza
et al., 2020).
In our opinion, Germany is another country to be researched. General
nancial management is carried out at the level of the highest bodies of
state authority - the Bundestag. The Ministry of Finance of Germany is the
main body determining the state policy in the sphere of nance, it develops
fundamentals of nancial and tax policy, determines the state budget,
its components, it also controls execution of the state budget and other
nancial processes in the society.
In addition, alongside with the Ministry of Finance, there is the
Federal Oce of Finance and Administration of the Public Debt, which
are accountable to the Federal Ministry of Finance. The rst department
is engaged in tax inspection of enterprises, taxation of foreign capital
investments, problems of eliminating double taxation and the the second
administration deals in operations on issue and repayment of loans and
nancing the budget decit (Ter-Minassyan, 1995).
One of the main bodies of nancial control in Germany is the Federal
Chamber of Accounts. Examining activities of this body, V. M. Geyets notes
that the legal status of this body is enshrined in the Principal Law of the
country. The Federal Chamber of Accounts is responsible for the control
over budgetary nancing and management of the Federation’s economy.
The scientist stresses that, when auditing correctness of accounting, the
Federal Chamber of Accounts monitors compliance with the laws, budget,
and administrative regulations (Geyets, 2012).
In the United Kingdom, nancial management is carried out by Her
Majesty’s Treasury, which combines the functions of the Ministry of
Finance and the Ministry of Economy. Her Majesty’s Treasury is headed
by the Chancellor, and along with him the nancial activities are managed
by the Paymaster General, the Financial Secretary (the First Deputy
Minister), the Parliamentary Secretary and 5 Lords Commissioners. Unlike
Ukraine, the UK also has a specialized body, which is responsible for public
debt management - the UK debt Management Oce. When examining
the powers of the UK debt Management Oce Yu. Ivanenko denes its
following functions: management of government cash balances, operational
management of deposits (Leheza et al, 2021).
Administration of other state obligations on guarantees of credits and
investments, management of services on purchase and sale of securities, etc.
It functions as part of the institutional structure of public debt management
in the United Kingdom. Creation of a separate Agency was accompanied by
579
CUESTIONES POLÍTICAS
Vol. 39 Nº 71 (2021): 566-578
a clear division of functions of monetary policy and debt management, so
that short-term monetary policy decisions did not aect its implementation.
(Ivanenko, 2008).
In Sweden, which is a parliamentary monarchy, the main department
for state control and accounting is the National Audit Oce. Its purpose
is to achieve an eective management of nancial activity. Its activity is
characterized by two directions: conducting annual audits of nancial and
economic activities of national institutions and enterprises and auditing the
of public procurement eciency. Unlike many other European countries,
the Swedish ministries are not empowered to directly manage government
agencies. Therefore, the Swedish Constitution allows the Parliament and
the Government to have their own public sector control structures (Dikan,
2007).
Conclusion
As a conclusion, we should note that management of nancial activities
in foreign countries is carried out on the basis of close relations between
the highest state authorities, a clear order of public relations in this sphere,
impartial distribution of functions among various state authorities in
implementation of nancial policy, which is, in its in turn, a consequence of
an eective nancial policy in such countries.
Thus, in foreign countries there is a considerable variety of authorities,
which manage and control nancial activities, target, and rational use
of nancial resources in the state. Thus, the main features of nancial
management in foreign countries include:
1. Active participation of all branches of the state power in formation
and realization of state policy in the sphere of nance and
implementation of nancial policy in the life of the society. In other
words, the legislative bodies and the President of the country take
an active part in the management of nancial activity.
2. Within the limits of their competence, they not only adopt nancial
laws, develop, and approve main directions of nancial policy,
but also make the most important nancial decisions of the state.
For example, the Treasury Department of the USA, the Oce of
Management and Budget, the Council of Economic Advisers are
parts of the presidential administration, and the President is given
considerable authority in formulating and implementing public
nancial policy. A similar situation exists in France, where there is
a signicant involvement of the Senate, the National Assembly, and
the President in managing the nancial activities of the state.
580
Marina V. Baranova, Olga B. Kuptsova, Sergey N. Belyasov y Arturas S. Valentonis
Culture of legal techniques: key dominants in the modern Russian legal system
3. Existence of an extensive system of bodies and institutions that
exercise control over nancial activities in the state, nancial
transactions between various public authorities in the sphere of
nancial relations (for example, the United States, the United
Kingdom).
4. the highest nancial public authorities may be concentrated in one
ministry, usually the Ministry of Finance (USA, Germany), or they
may be distributed among several ministries, such as in France and
the United Kingdom.
5. The bodies responsible for nancing management in foreign
countries envisage existence of a large number of subsidiary
bodies, separate autonomous subdivisions, departments, which are
responsible for the implementation of a particular area of nancial
activities (for example, regulation of money circulation, public
debt payment, debt policy, tax policy, economic policy, analytical
activities in the sphere of nance, accounting and nancial reporting,
etc.) Diversity of nancial management bodies is observed in such
countries as Germany and the USA.
6. There is a clear delineation of powers among subsidiary and
autonomous bodies in the sphere of nancial control. That is, the
matter is about a clear delineation of competence among autonomous
nancial management bodies in accordance with their sphere of
inuence. For example, clearly delineated are the control functions
between the Federal Oce of Finance and Administration of the
Public Debt in Germany, General Inspectorate of Finance, General
Inspectorate of Administration, and the General Inspectorate of
Social Aairs in France etc.
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Esta revista fue editada en formato digital y publicada
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Vol.40 Nº 72