Post Graduate Student at the Finance Department of Kyiv National University of Trade and Economics
BUDGET PLANNING SYSTEM IN UKRAINE
Background. The research studied theoretical and practical issues concerning the development of areas of budget planning, which is the main instrument of state regulation of social and economic development. Targeted fiscal policy involves strategic budget planning. Program-target method of planning the budget is a significant part of the system of state regulation of social and economic development. Setting the priorities in budget planning is an effective tool to influence structural changes in the social and economic sectors.
The aim of the research is studying the budget planning system as an instrument of influence on socio-economic development.
Materials and methods. Scientific study used a set of approaches and methods, including structural and dialectical methods applied for studying budget planning; methods of analysis, synthesis, statistics – to identify and summarize the areas of budget planning system.
Results. Economic role of the budget planning in socio-economic development, which is the application of the budget resources management tools, including identification of objectives and areas of social development, innovation objectives of economic growth, predictive indicators of budgetary allocations, the relationship of functions and tasks, program actions of the budget process participants, public financial control and evaluation of budget funds will strengthen the dynamic balance of the budget system, the validity of budget planning, the efficiency of budget spending and the budget programs. The approaches to the formation of quality of performance indicators for budget programs in order to establish the degree of achievement of targets, goals, objectives have been improved. It will strengthen the relationship between the financial resources used and results, improve relevant management decisions in planning the budget. The program-target method of budget planning has been analysed, approaches to budget planning in the developed world have been generalized. The author has offered the ways of improving theoretical and practical directions of budget planning. It has been proved that the use of program-target method increases the responsibility of budget programs participants. The ways of the further development of budget planning and execution, improving program-target method and medium-term budget planning have been determined. Areas of budget planning system have been shown.
Conclusion. Budget planning system needs further improvement through the development of the institutional framework of the budget process. Modernization of budget programs should be done by expanding strategic objectives, the achievement of which is assigned to key spending unit.
To achieve sufficient budgetary performance it is important to streamline and optimize the number of budget programs. Long-term budget forecasting is an important instrument of state regulation of the economy and social processes as it defines areas of budgetary funds allocations in the future on the basis of the defined objectives and priorities of the socio-economic development of a country.
Keywords: budget, budget planning, budget programs, program-target method of planning.
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