PROGRAM-TARGET METHOD OF BUDGETING: IMPLEMENTATION PROBLEMS AND DEVELOPMENT PROSPECTS
DOI:
https://doi.org/10.15407/economyukr.2018.02.021Keywords:
program-target method, budget, budget funds, efficiency of using the budget funds, institutionAbstract
The author examines the state of implementation of the program-target method into the budget system of Ukraine. It is noted that despite the existing legislative and regulatory framework, the actual application of this method has certain shortcomings. The reason is that participants in the budget process do not always adhere to provisions of the Budget Code of Ukraine and other regulatory requirements, for example, concerning the timely approval and completeness of information in the passports of budget programs. Besides, the objectives of the budget program and its main tasks are not always properly determined, which reduces the ideology of the program-target method and makes it impossible to exercise control over effective use of budget funds.
A hypothesis is advanced that the main reasons for the incomplete implementation of the program-target method are imperfection of existing economic institutions, unpredictable budgetary policies and quite frequent changes in strategic objectives. In this regard, there is a need to reform the budget system and establish new financial and economic institutions. These new institutions should take an active part in shaping the budget, identify priorities and fully meet the current needs of citizens.
Given the difficult socio-economic situation in the country, the program-target method is justifiably applicable. Therefore, when forming the budget, attention is to be focused on the need to: analyze the current problems of the economy and social sphere; apply an integrated approach to solving the problems; determine clear priorities; and focus the fund managers on the effectiveness of using the limited budgetary resources. The allocation of funds from the budget for a specific purpose and their effective use would contribute to stabilization of the financial system and sustainable dynamics of the country’s socio-economic development.
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