№ 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)

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