The Concept of Financial Fraud in the Budgetary Sphere

Abstract

This article examines the concept and content of financial fraud in the budget sphere. An analysis of the legal regulation of financial frauds was carried out. Attention is paid to the interpretation of the concept of fraud and financial fraud. The main types of financial fraud, which are typical for the budget sphere, are highlighted.

A systematic analysis of the concepts of financial fraud by various scientists was carried out and a proper definition was given. It was determined that financial fraud in the budget sphere is the commission of actions that violate the budget legislation in order to receive budget funds at one's own disposal for their non-targeted use, which causes the corresponding budget to not receive revenues or direct expenditures from the budgets for other than the intended purpose.

The opinion is concentrated that socio-economic factors, political instability, military actions that take place due to the invasion of the aggressor country should be attributed to the factors that create favorable conditions for committing and spreading manifestations of financial fraud in the budget sphere. In general, financial fraud with budget funds can be defined as a set of economic relations between a certain subject and the state in the budget process, which are carried out through deception or abuse of trust, as well as using an official position, with the aim of obtaining an economic benefit.

It is well-founded that fraudulent actions lead to a decrease and underutilization of budget resources, because in this way they are not used for their intended purpose. It was found that such types of financial fraud with state budget resources as fraud in the field of public procurement, fraud with financial resources and misappropriation of budget funds have become the most widespread. In order to minimize the consequences of financial fraud, it is proposed to strengthen and optimize the budget control procedures, in particular thanks to the cooperation of the Bureau of Economic Security and the European Anti-Fraud Office (OLAF).

It was concluded that, at the present time, it is necessary to pay special attention to combating financial fraud both at the economic and legal levels.