Згідно з Наказом Міністерства освіти і науки України від 28.12.2019 № 1643
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MEDIUM-TERM PLANNING OF LOCAL BUDGET EXPENDITURES

on .

UDC 336.15
 
KARAMUSHKA Larysa,
Director of Finance Department of Kyiv State Regional Administration
 
MEDIUM-TERM PLANNING OF LOCAL BUDGET EXPENDITURES
 
Background. In recent years the financial policy of forming local budgets has not sufficiently ensured the economic development of administrative units. That’s why issues of further development of the medium-term local spending are topical.
Review of scientific sources on the selected subject allowed us to determine that the effective mechanism of interregulation involves the use of formula calculations when planning expenditures of local budgets and intergovernmental transfers. The purpose of the medium-term expenditures of local government is to ensure more efficient use of scarce budgetary resources through a realistic assessment of future government revenue and prioritizing funding expenditures by budget forecasting for several periods. This forms the aim of the research.
Materials and methods. The scientific article used a combination of methods and approaches, allowing to implement conceptual integrity of the study. The systematic and structural methods were used to understand the nature of local spending as a tool for social and economic development of the areas; synthesis methods, factor, comparison were applied in determining the main directions of improving the efficiency of local budgets in terms of economic transformations, the planning of local medium-term budgets.
Results. Ways to increase the efficiency of local spending as a tool for social and economic development and planning local budgets in the medium term were revealed. A prognosis of the share of local spending in GDP over the medium term was made. It was determined that the evaluation of the the budget programs to ensure qualitative and quantitative analysis of their performance requires development and implementation of an integrated concept, the use of which will provide decision-making regarding the adjustment of budget programs and strategies for their implementation. Methodological principles of evaluation of budget programs in the preparation and execution of local budgets by program-based method, based on a system of appropriate integrated indicators were offered.
Conclusion. Improving the validity of budget planning, ensuring consistency and predictability in the conduct of fiscal policy at the local level in modern conditions are particularly important. In order to implement it it’s appropriate to introduce medium-term local spending, which should be based on ensuring fiscal performance relationship with the strategic objectives of fiscal policy. The above will facilitate more effective allocation and use of local budgets, achieving stability in conducting financial and economic policies, increased control over compliance with the principle of expenditures effectiveness of local governments and whether to continue funding in subsequent fiscal years. Planning of local budgets must take into account the results of their performance in previous fiscal years. To assess the performance of local government’s spending the following groups of indicators should be used: planned and actual budget figures, financial ratios, performance indicators of budget funds, unit value indices of services and products. During the strategic planning of local spending it is important to determine amounts of medium term expenditure commitments and their consideration in the formation of the local budget expenditures for the planned year. This ensures communication between  annual and strategic planning of thel local spending, which is necessary to improve budget transparency and accountability of all its members.
 
Keywords: budget system, local budgets, expenditures, interbudget regulation, program based budgeting method, medium-term budget planning.

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