Bìznes Inform (Apr 2020)
Financial Fraud in the Budget Sphere: Economic Essence and Varieties
Abstract
The spread of financial fraud processes over the past decade has taken on a special significance in all sectors of the economy, as it has become one of the major threats to our country’s economic security. Therefore, finding methods to identify, counter and neutralize threats to the national security of the State caused by the consequences of financial fraud is a contemporary direction of scientific research. In this sense, the budget sphere is a picky object of attention of fraudsters, thereby actualizing the mentioned problem. The research is aimed at substantiating the theoretical bases of financial fraud in the budget sphere, analyzing and systematizing its types, determining the directions of counteracting. The essence of the concept of «financial fraud» is clarified, the author’s own vision of the concept of «financial fraud in the budget sphere» is substantiated, which is disclosed from the position of comprehensive approach, with integration of the views of scientists as much as possible. It is proposed to interpret this concept as violations of legislation and budgetary discipline in order to obtain own benefit or benefit for third parties, which led to the loss / or lack of funds in the budget and theft of public and communal property. Methods of financial fraud in the budget sphere and features of manifestation are defined. Its elements are presented, whereto is suggested to include: implementation purpose, origin area, and breadth of coverage. A typology of financial fraud in the budget sphere is proposed. It is noted that the most common types of financial fraud in the budget sphere are fraud in order to seize budget funds and violation of budget legislation without signs of theft. These include misuse of budget funds, illegal expenditures, as well as fraud with tender purchases and the seizure of budget funds.
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