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This paper aims to determine whether local governments (LGs) use non-consolidated municipally owned companies (MOCs), excluded from public sector entities and, consequently, from sub-national debt to avoid fiscal debt limits. This paper contributes to the literature by analysing the fiscal debt rule’s impact on the off-budget municipal activities in total and separate in different types of local government units.

This paper uses difference-in-differences and the system general method of moments model with the Blundell–Bond estimator for dynamic panel data analysis of MOCs owned by 866 Polish municipalities in 2010–2018.

This paper shows that the MOCs’ revenues support limited local public debt capacity by indebtedness restrictions imposed on municipalities in 2014. As a result, less indebted municipalities have higher off-budget revenues. The tightening of fiscal rules related to sub-sovereign indebtedness increased off-budget activities, but that effect is much stronger in rural and rural–urban municipalities than in urban municipalities and big cities.

This paper contributes to the literature by exploring the fiscal debt rule’s impact on the off-budget municipal activities in total and separate in different types of local government units. In this paper, the authors combine theories relating to private and public finance; this is a novel approach and one that is also necessary – as, in fact, the worlds of public and private actors intersect – as exemplified by the existence of MOC.

The purpose of this paper is to review monetary policy options in countries assumed to be suffering from two common economic problems: deficient private demand and high and rising public debt.

The analytical approach assumes that relevant authorities have decided that new money creation is necessary to address their economic problems. The paper asks the question: how should this new money creation best be deployed to create the required economic stimulus in the context of rising public debt?

The first finding is that the latest rounds of “quantitative easing” in the USA (QE2) and Japan are likely to be inefficient, largely ineffective and have adverse side‐effects, and that in periphery countries the risk of debt default is being increased by current defensive policy settings. The second finding is that the policy of financing budget deficits by printing new money is likely to be more effective (than “quantitative easing” and current Eurozone policy) in raising demand, output and employment without adding unnecessarily to already high levels of public debt.

There are very substantial practical policy implications, involving a potential change of monetary policy strategies for two of the world's largest economies and for Eurozone periphery countries. Post‐earthquake reconstruction in Japan could be financed in the manner recommended in this paper.

The originality/value lies in demonstrating that current monetary policy orthodoxy is misplaced, and that an alternative policy strategy has been overlooked and is likely to be more effective.

Expenditure management practices in Asia shows that these vary from the ]still-in-transition’ China, to the colonial concerns of compliance in the South Asian countries, to more advanced experiments in Singapore. Budgetary practices in many of these countries are characterized by incremental and bottom-up budgets, across-the-board cuts in times of fiscal stress, and little or no analysis of costs and outputs. At the same time, resource allocation as a percentage of GDP and accrual accounting are being tried in some other countries. The paper suggests that the institutional changes now underway in these countries and the imperative need to control expenditure could bring meaningful changes.

The purpose of the paper is to construct a framework constituting a link between Islamic banks’ excess liquidity and states’ financing needs, in an Islamic way.evel0.

The framework, constituting a linkage between Islamic banks’ funding capacity and governments’ financing needs, is constructed using a money market approach. Later on, the volatility of existing sovereign Sukuk is compared to corporate Sukuk, using generalized autoregressive conditional heteroskedasticity (GARCH) (1, 1) model, to assess the stability of the secondary market for Islamic government securities.

The volatility is weak for the Sukuk studied; this means that there is stability of the secondary market for Sukuk (sovereign and corporate).

This is the first paper that presents a framework dealing directly with Muslim states’ budget deficit and debt. The framework includes Islamic banks, public companies, the central bank, Ministry of Finance and the government.

The research topicality is stipulated by the need to study the legal regulation problems of the state financial guarantees of medical services for the population in Ukraine and to consider positive experience of the developed countries in this area. The aim of the article is to define the main trends in the legal regulation of healthcare in Ukraine; analyze the state financial guarantees of medical services for the population, and positive and negative aspects of the healthcare reform; to explore the international experience in medical services for its implementation to national law enforcement in the sphere of healthcare.

During the research, systematization and generalization of the positive international experience in the legal regulation of the state financial guarantees of medical services for the population were realized.

The analysis of the population's perception of healthcare innovations was carried out. The level of medical service was assessed. The results showed that in order to improve Ukrainian legislation on healthcare, it is necessary to remove absolute conflicts of normative legal acts; to establish public confidence in innovations and changes; to take into account international experience adapting it to specific features of Ukrainian legislation.

The defined theoretical and applied provisions constitute the practical significance for scholars and practicians, who deal with the legal regulation problems of the state financial guarantees of medical services for the population, university professors training highly qualified personnel, and all interested people concerned with healthcare.

The Hong Kong government emphasizes very much the importance of achieving the “financial stability” objective, and has been very successful in controlling expenditure growth and in accumulating fiscal reserves. This remarkable performance is attributed to adhering consistently to budgetary guidelines. Managing the financial budgets through budgetary guidelines is a unique feature of the Hong Kong fiscal system. Discusses the role of budgetary guidelines in the Hong Kong fiscal system, and reviews the evolution of these budgetary guidelines since the early 1970s. It turns out that the guideline on expenditure growth is the most important budgetary guideline. Fiscal performance is assessed against these budgetary guidelines. With the financial stability objective having long been achieved, strict adherence to these budgetary guidelines would unduly constrain social and economic developments in Hong Kong. Recommends comprehensive review of the role and function of these budgetary guidelines.

In this introductory essay, the authors describe a new public finance characterized by enduring revenue constraints; mounting budgetary claims from accruing liabilities for post-retirement benefits for government employees, rising health care costs, and an aging population; and uncertainty about future budgetary demands and resource limitations. The new public finance is described as a convergence of economic and demographic forces with past practices that increased the fiscal vulnerability of states and local governments. The authors explain that states and local governments will not overcome challenges by relying upon traditional ways of thinking about and conducting business but instead must revamp frameworks for practice. Symposium papers are described as tackling several of the most pressing issues facing governments today with an eye towards rethinking customary approaches.

The purpose of this paper is to understand current practices in capital budgeting (including real options) in Indian companies and provide a normative framework (guidelines) for practitioners (based on our findings and literature reviewed).

A questionnaire survey was administered to 166 non‐financial companies of the BSE 200 index. Secondary data were also collated from 2001‐2011.

Trends towards sophisticated techniques and sound capital budgeting decisions have continued in India. All sample respondent firms used discounted cash flow (DCF) techniques in conjunction with non‐DCF techniques. Internal rate of return (IRR), used by more than three quarters of the sample companies, is favored over net present value (NPV), used by half of the sample companies. Real options are used by half of the sample companies. Permanent (long‐term) capital has been used to finance fixed assets (net) and working capital (net).

The limitations of the study are that it is country specific and a detailed sectoral analysis of the constituent sectors of the sample companies could have perhaps provided deeper insight into the subject.

The findings of this research, decades of teaching experience of the authors and the literature reviewed have been utilized to evaluate current practices and suggest possible improvements in decision making (through a normative framework).

The findings show that there still remains a theory‐practice gap in the usage of IRR over NPV. The usage of permanent (long‐term) capital to fund fixed assets (net) and permanent working capital requirements, although sound, could be an indication of surplus funds which could be used to repay long‐term debt or finance more asset building.

The purpose of this paper is to evaluate the impact of external audit on the management of the Common Fund of the Mozambique National Institute of Statistics (INE).

This paper followed a case study approach of the INE Common Fund that was based on the qualitative evidence from the content analysis of the external audit reports, annual plans of activities and budget for the past seven years and interviews with middle managers of the INE.

The research found that external audit has a relatively significant impact on the management of the INE Common Fund. The authors attribute the positive impact to the high concern of management to implement the external audit recommendations, associated with the financial dependence between the agent (the National Institute of Statistics) and the principal (Fund Donors), explained through Laughlin’s Model of Accountability.

The results indicate that external audit associated with the financial dependence of the agent on the principal has a significant impact on the accountability. Thus, it contributes to assist in the formulation of public policies on external financing to developing countries.

Most of the studies on external audit and accountability are from countries with more developed economies than Mozambique’s, without heavy reliance on external financing, and these studies analyse the audits carried out by public audit institutions. This research explores the phenomenon in the context of external financing to the State Budget by governments and international organisations.