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№ 1/2016

Nauk. pr. NDFI 2016 (1): 68–82

BUDGET POLICY

Methodological approaches to local expenditure budget planning: international and domestic practices

This article explores the contemporary foundation of budgeting at the local level in developed countries. This foundation can be described by the summarizing concept of a “new public expenditure management.” The essence of its principles and main tasks are discussed, the importance of accomplishing these tasks for Ukraine is assessed, and the need for determining priorities in planning expenditures for implementing local budget programs is identified. The article analyzes distinctive features of local expenditure planning in OECD countries, considers approaches used to determine the role of local budgets, their financial basis of accounting and expenditure planning, budgetary principles. Emphasis is placed on the importance of increasing the role of nonfinancial indicators in performance monitoring and evaluation. The author specifies success factors in developing performance indicators and proves the need for dividing them into micro- and macro level indicators. A critical analysis of the implementation of results-based budgeting at the local level in Ukraine is provided. Performance indicator monitoring systems of the UK, Colombia, Chile and Finland are considered and their main success factors are outlined. The article compares and contrasts international approaches to local budget planning with the Ukrainian approach, describes domestic practices of public expenditure planning. The article also contains proposals for the partial transition to results-based budgeting at the local level in Ukraine and for the use of performance indicators in calculating the amounts of subventions from the central state budget to local budgets.

Keywords:local budgets, public expenditure management, public service, results-based budgeting (results-oriented budgeting, performance-based budgeting), performance indicators.

JEL: H60, H61, H72.

Yevtushenko M. . Methodological approaches to local expenditure budget planning: international and domestic practices / M. Yevtushenko // Наукові праці НДФІ. - 2016. - № 1. - C. 68-82.

Article original in Ukrainian (pp. 68 - 82)

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