FRAUD WITH FINANCIAL RESOURCES OF THE STATE: TYPES AND EFFECT ON THE SHADOW ECONOMY

Abstract

Neutralization of threats to the national security of the state, caused by consequences of financial fraud, necessitates development of qualitatively new approaches to reveal the causes and vectors of its influence on the state’s economy in general and welfare of its citizens. In the article the essence is investigated and varieties of financial fraud, depending on the object of fraudulent actions and the method of implementing fraudulent schemes, are systematized, their influence on formation of the shadow economy sector in Ukraine is determined. The most common methods of committing fraud with financial resources of the state, used in modern Ukrainian realities, namely unlawful and inappropriate use of public funds; evasion of tax payment; fraud in the field of public procurement and falsification of financial reporting are analyzed. According to the audit results, conducted by the Accounting Chamber of Ukraine and the State Audit Service of Ukraine, types of fraud with budget resources are described. It has been established that increase of the level of economy shadowing indicates decrease in amount of budget resources that are formed as a result of GDP distribution; therefore, in order to find reserves for increasing budget revenues under the current conditions, it is necessary to implement measures in the context of unshadowing the Ukrainian economy. On the basis of theoretical multiplicity approach and analysis of interval data, an interval model of the state budget revenues dynamics that allows determining predicted dynamics of budget revenues, taking into account an influence of such factors as GDP, incomes of population and financial results of enterprises before taxation, was developed. As a result of prediction, the indicators also reflect the amount of reserves for growth of budgetary resources, provided that successful measures are implemented in direction of unshadowing the Ukrainian economy. In order to detect and prevent fraud with financial resources of the state, necessity and justification of the ways to improve the state financial control in this area is proved.

Keywords

• fraud
• types of fraud
• fraud with financial resources of the state
• misuse of budget funds
• tax evasion
• fraud in the field of government procurement