USE OF THE BUDGETARY ASSETS IN UKRAINE: TENDENCIES, PROBLEMS, AND WAYS TO THEIR SOLUTION

Abstract

The problem of efficiency of budget expenditures is especially actual under current complicated socio-economic conditions. By the economic essence, the evaluation of the efficiency of state’s expenditures allows one to determine how efficient and rational are the activity and the behavior of managers of the assets in their aspiration to attain maximum results from state’s and, first of all, budget assets.
Unfortunately, the question of the efficiency of expenditures is insufficiently regulated by Ukraine’s legislative and normative-legal acts. In fact, we are in the situation where, for example, the volumes of interbudget transfers, which are assigned to the principal managers of assets of state’s budget as “national expenditures” (including the subventions from state’s budget to local budgets according to Appendix 3 to the Law of state’s budget of Ukraine for a relevant year), and the certifications of budgetary programs for the national assets (according to i. 2 of the Rules of drawing-up of the certifications of budgetary programs and the reports on their execution) are not available.
By our calculations, 10–15% of the expenditures of the total fund of state’s budget only for the help to children in the last years were given without appropriate evaluation of the efficiency.
The analysis of the general state of the efficiency of the use of budget assets testifies that the negative tendency in this question holds for years. From year to year, the volumes of inefficiently used budget assets increase, though the tendencies of established facts can somewhat vary.
The question about budgetary violations, in particular, the illegal one, including the nontargeted and inefficient management and the use of budget assets, is one of the main problems in the current budget policy of Ukraine. Reasons for the appearance of budgetary violations should be sought in the permanent nonfulfilment of normative-legal acts, norms, and principles of the current legislation.
In the light of modern challenges to Ukraine, it is necessary to pass to the basically other scientifically grounded conception of budget policy in the sphere of expenditures. The attention should be focused on the comprehension of the essence of budget assets, their role in a modernization of country’s economy and in the transition onto a new level of life standards in the social, humanitarian, and ecological policies.
The allotments of budget assets should be realized by three basic principles: the expediency of an allotment, legality of a direction, and the efficiency of a usage.
The relations in the sphere of outlay of budget assets must be based on the principles of efficient and rational usage of budget assets and be a source of the development of the Ukraine, its economic strength, power, social justice, and welfare of the people.