The Comparison of Net Budgetary Position Development and GDP Development for Selected Net Recipients of the European Union
The topic of European Union budget is very important for each member state, especially nowadays because of recessive economic crisis and on-going crisis of euro zone. This article analyses not only development of net position for selected countries of EU, but also compares the net position development with the GDP development. The level of GDP should be one of the most important indicators for calculation of contributions for each member state, but because of many exceptions and very complicated mechanism its influence could be low. The aim of this paper is to verify the hypothesis that there is some correlation between the development of net position per capita and the development of GDP per capita for selected net recipients of EU. For verification of this hypothesis is used especially selective correlation coefficient.
THE BUDGET OF THE EUROPEAN UNION
The budget is the financial framework within which the European Union operates, displaying all kinds of Union revenues and expenditures. It is founded upon several principles: • unity – all revenues and expenditures are shown in a single document; • annuality – budgetary amounts refer to the budgetary year, which lasts from January 1 to December 31. Since an everincreasing share of the expenditures refers to multiyear projects, budgetary items are shown in two ways. Expenditures shown in the accrual manner (commitment appropriations) are costs that derive from activities carried out (calculated, invoiced) during the financial year. Expenditure according to the cash principle (payment appropriations) covers amounts of payments carried out in the same year, but also include payments pursuant to liabilities from previous periods, and do not include amounts that relate to the same year but which are due for payment later; • equilibrium – expenditure must not exceed revenue. Resources may not be borrowed to cover deficits, and any budget surpluses are carried forward to the next period. The budget of the EU is financed with the Union’s own resources, which are not subject to any inter-government negotiations. There are four kinds of own revenues with which the budget is financed: agricultural levies, customs duties, VAT resources and payments from member states. The first two forms of revenue, i.e., the agricultural levies and the customs duties, were used at the beginning of the working of the Union, and were sufficient for its financing. But over the course of time, their relative importance weakened, and a need for new sources of finance appeared. Thus today the major part of budgetary revenue is collected with new own resources: the share in VAT and the payments from member states. The annual budget for 2005 came to 106 billion euros, equivalent to 1.004% GDP-a of the enlarged Union.
Did the metamorphosis from Export Processing Zones to Special Economic Zones improve the efficiency of trade enclaves in India?
In this paper, the efficiency of seven conventional Special Economic Zones in India is analyzed, by adopting a stochastic production frontier technique, for the period between 1986–1987 and 2007–2008.Results indicate that although the efficiency scores of these enclaves have improved over the years, specifically with the introduction of the SEZ policy (2000–2001), it is far below the threshold level as identified in the literature. Besides, one can also observe a discrepancy emerging between better export earning zones and efficient zones. On the determinants side, policy intervention and large geographical area, accompanied by clustering of units, are found to have impacted the efficiency scores of these enclaves positively.