№ 3/2016

№ 3/2016

Nauk. pr. NDFI 2016 (3): 122–134

BUDGET POLICY

STAVYTSKYI Andrii ¹, BASALA Katerina

¹Taras Shevchenko National University of Kyiv

Optimization of budget investment in Ukraine

The study found that general government sector, on the one hand, regulates investment processes in the country; on the other hand, it is directly involved in these processes through public investment that requires maximizing the efficient use of scarce capital resources of the state. Based on international experience, as well as the national peculiarities of Ukraine, the author proposes a methodology for selecting investment projects, using a combination of two approaches: selection on ENPV indicators and AHP method. The priority of this methodology is the best consideration of the project effects under limited financing, as well as minimizing the risk of corruption. According to the methodology, all investment projects are divided into three groups depending on the scope of investment: IT, innovation, transport infrastructure; environmental protection, energy saving; other projects. Selection of projects is subject to an optimization problem, in which the objective function maximizes the benefits of problem projects and model restrictions show that the cost of the project may not exceed the planned capital expenditures for the relevant period. Also special distribution of capital expenditures among project groups is taken into account.

Keywords:investments, budget, international experience, optimization model.

JEL: Н54, Н61.

STAVYTSKYI A. . Optimization of budget investment in Ukraine / A. . STAVYTSKYI, K. Basala // Наукові праці НДФІ. - 2016. - № 3. - C. 122-134.

Article original in Ukrainian (pp. 122 - 134)

Download

Downloads :581

1. Samuelson, P. A. (1955). Diagrammatic Exposition of a Theory of Public Expenditure. The Review of Economics and Statistics, 37, 4, 350–356.
2. Warner, A. M. (2013). A Framework for Efficient Government Investment. IMF Working Paper, 13/58.
3. Devarajan, S., Squire, L., & Suthiwart-Narueput, S. (1997). Beyond Rate of Return: Reorienting Project Appraisal. World Bank Research Observer, 12, 35–46.
4. Dabla-Norris, E.,  Brumby, J., Kyobe, A.,  Mills, Z., & Papageorgiou, C. (2011). Investing in Public Investment: An Index of Public Investment Efficiency.  IMF Working Paper, 11/37.
5. Cabinet of Ministers of Ukraine. (2015). Some issues of public investment (Decree № 571, July 22). Retrieved from zakon0.rada.gov.ua/laws/show/571-2015-п [in Ukrainian].
6. Verkhovna Rada of Ukraine. (2012). On stimulation of investment in priority sectors of the economy to create new jobs (Law № 5205-VI, September 6). Retrieved from zakon4.rada.gov.ua/laws/show/5205-17 [in Ukrainian].
7. Cabinet of Ministers of Ukraine. (2011). On approval of the investment and innovation activity in Ukraine (Decree № 389, February 2). Retrieved from zakon3.rada.gov.ua/laws/show/389-2011-п [in Ukrainian].
8. Ministry of Justice of Ukraine. (2012). Investment legislation: state, problems and prospects (Explanation, May 8). Retrieved from zakon4.rada.gov.ua/laws/show/n0015323-12?test= XNLMf5x.qwJgCQGwZisIoEeAHI4q.s80msh8Ie6 [in Ukrainian].
9. The World Bank. (n. d.). The Power of Public Investment Management: Transforming Resources Into Assets for Growth. Directions in Development. Retrieved from documents.worldbank.org/curated/en/2014/09/20268592/power-public-investment-management-transforming-resources-assets-growth.
10. HM Treasury. (n. d.). The Green Book: Appraisal and Evaluation in Central Government. Retrieved from www.gov.uk/government/publications/the-green-book-appraisal-and-evaluation-in-central-governent.
11. HM Treasury. (2015). Public sector business cases using the five case model: updated guidance. Retrieved from www.gov.uk/government/publications/the-green-book-appraisal-and-evaluation-in-central-governent.
12. Central Expenditure Evaluation Unit. (n. d.). The Public Spending Code. Retrieved from publicspendingcode.per.gov.ie.
13. United Nations. (n. d.). Metodologіa General de Preparaciоn y Evaluaciоn de Proyectos. Retrieved from www.cepal.org/es/publicaciones/5608-metodologia-general-de-identificacion-preparacion-y-evaluacion-de-proyectos-de.
14. Korea Development Institute. (n. d.). General Guidelines for Preliminary Feasibility Studies. Retrieved from pimac.kdi.re.kr/eng/mission/pdf/General_Guidelines_for_PFS.pdf.
15. Cabinet of Ministers of Ukraine. (2013). On the list of priority economic sectors (Decree № 843-р, August 14). Retrieved from zakon5.rada.gov.ua/laws/show/843-2013-р in [Ukrainian].