№ 4/2016

№ 4/2016

Nauk. pr. NDFI 2016 (4): 15–33

BUDGET POLICY

PAVLIUK Klavdiia ¹, SHAPORENKO Olena ²

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-9495-6630
²SESE “Academy of Financial Management”

Increasing the efficiency of fiscal expenditures under the reform

The purpose of this article is to develop practical recommendations for optimizing the structure of expenditures of the State Budget of Ukraine for sustainable socio-economic development. The study uses general and specific methods and approaches. In particular, a comparative analysis of the experience of the foreign countries is applied in disclosing the economic essence of the formation of the state budget expenditures. The study examines the economic components of the formation of the State Budget of Ukraine, the classification of fiscal expenditures according to budget programs, the main administrator of budgetary funds and their function. The author outlines modern trends in the structure of expenditures in foreign countries, which are defined by economic potential of the country, the scale of problems to be solved by the state at the present stage and the role of the state in the economy. The study identifies peculiarities of fiscal policy abroad, singles out their common features and describes the distribution of consolidated budget expenditures by function in European countries. A thorough analysis is given to the expenditures of the State Budget of Ukraine by functional classification for the period of 2011–2015, which shows an annual decrease in the share of spending on education, health, economic activities and an annual increase in the share of expenditures for general government functions and defense spending due to the events in eastern Ukraine. The author investigates the optimization of budget programs resulted in a reduction in the number of major spending funds by liquidation, reorganization and association of institutions and organizations. The analysis of expenditures of the State Budget of Ukraine by functional program classification outlines the main problems of formation and execution of expenditures. Given the experience of advanced economies, practical measures to optimize budget spending are proposed. This enables to develop and implement a prudent fiscal policy, which will take into account the experience of leading countries to ensure stability of the state, the positive impact on the quantitative and qualitative indicators of socio-economic development. The practical significance of the study lies in the fact that the proposed measures will contribute to more efficient management of financial resources of the state to achieve its objectives in the most economical and effective manner.

Keywords:state budget, budget programs, expenditures, fiscal policy, financial resources.

JEL: E62, H50, H60.

PAVLIUK K. . Increasing the efficiency of fiscal expenditures under the reform / K. . PAVLIUK, O. . Shaporenko // Наукові праці НДФІ. - 2016. - № 4. - C. 15-33.

Article original in Ukrainian (pp. 15 - 33)

Download

Downloads :3060

1. President of Ukraine. (2015). On the Strategy for Sustainable Development "Ukraine - 2020" (Order № 5/2015, January 12). Retrieved from zakon3.rada.gov.ua/laws/show/5/2015 [in Ukrainian].
2. Schmidt, А., Eichstädt, H., & Fußmann, M. (2016). Budget für Bildung, Forschung und Wissenschaft 2013/14. Wiesbaden: Statistisches Bundesamt. Retrieved from www.destatis.de/DE/Publikationen/Thematisch/BildungForschungKultur/BildungKulturFinanzen/BildungsausgabenPDF_ 5217108.pdf?__blob=publicationFile.
3. Hetmeier, H.-W., Schmidt, A., Vogel, S., & Buschle, N. (2015). Bildungs-finanzbericht 2015: Im Auftrag des Bundesministeriums für Bildung und Forschung und der Ständigen Konferenz der Kultusminister der Länder in der Bundesrepublik Deutschland. Wiesbaden: Statistisches Bundesamt. Retrieved from www.destatis.de/DE/Publikationen/Thematisch/BildungForschung Kultur/BildungKulturFinanzen/Bildungsfinanzbericht1023206157004.pdf?__blob= publicationFile.
4. Mosler, W. (n. d.). German balanced budget law pending. Retrieved from moslereconomics.com/2009/06/22/german-balanced-budget-law-pending/.
5. Fridman, M. (2007). Freedom to choose: our position. Moscow: Novoe izdatel`stvo [in Russian].
6. Buryachenko, A. Ye. (2014). Functional decentralization and improvement of budgetary relations. Finance of Ukraine, 2, 19–29 [in Ukrainian].
7. Ky`ry`lenko, O. P. (2013). Achieving strategic targets improving intergovernmental relations in Ukraine. Finance of Ukraine, 8, 19–28 [in Ukrainian].
8. Kudryashov, V. P. (2016). Mechanisms for financing the state budget in terms of overcoming fiscal imbalances. Economy of Ukraine, 7, 3–20 [in Ukrainian].
9. Lunіna, І. O. (2006). Public finance reform and intergovernmental relations. Ky`yiv: Naukova dumka [in Ukrainian].
10. Lunіna, І. O. (2014). Fiscal decentralization: the goals and directions of reforms. Economy of Ukraine, 11 (636), 61–75 [in Ukrainian].
11. Oparіn, V. M. (2015). Modernization of the financial infrastructure as the foundation to ensure stability of the national economy. Efficient economy,
5. Retrieved from www.economy.nayka.com.ua/?op=1&z=4042 [in Ukrainian].
12. Fedosov, V., Hladchenko, L. (2009). The budget deficit in the context of the western financial theory and practice. Financial risks, 3, 19–32 [in Ukrainian].
13. Chuhunov, І. Ya., Іhnatyuk, І. M. (2016). Formation of expenditures in the social and economic development. Economic Bulletin of University. Perejaslav-Khmelnytsky State Pedagogical University, 28/1, 217–226 [in Ukrainian].
14. Verkhovna Rada of Ukraine. (2010). Budget Code of Ukraine (Law No. 2456-VI, July 8). Retrieved from zakon0.rada.gov.ua/laws/show/2456-17 [in Ukrainian].
15. Mazarakі, A. A. (Ed.). (2009). The budgetary system of Ukraine and the EU. Ky`yiv: KNTEU [in Ukrainian].
16. Yefy`menko, T. І., Stefanyuk, І. B., Ruban, N. І. et all. (2004). State financial control of budget programs. Ky`yiv: NDFІ [in Ukrainian].
17. Boyarko, І., Dekhtyar, N., & Dejneka, O. (2013). Analysis of the fiscal policy of the EU and Ukraine in the field of formation and use of public spending. Bulletin of National Bank of Ukraine, 9, 17–21[in Ukrainian].
18. Zajchy`kova, V. (2013). Financial instruments Policy stabilization of public finances in foreign countries. Bulletin of Taras Shevchenko National University of Kyiv. Economics, 8 (149), 36–41 [in Ukrainian].
19. Kudryashov, V. P. (2012). Public finances in the period of reform. Finance of Ukraine, 1, 41–51 [in Ukrainian].
20. Ly`vdar, M. V. (2009). Program-target method of budgeting. Galician Economic Journal, 2 109–114 [in Ukrainian].
21. Naboka, T. S. (2014). Optimization of budget expenditures. Economy of Ukraine, 1 (626), 51–62 [in Ukrainian].
22. Nechayuk, І. B. (2013). Ways to optimize the state budget in view of the current debt burden. Innovative economy, 8 (46), 294–297 [in Ukrainian].
23. The Ministry of Finance of Ukraine. (n. d.). Retrieved from www.minfin.gov.ua
24. The Accounting Chamber of Ukraine. (2014). The report of the Accounting Chamber for 2013. Ky`yiv. Retrieved from www.ac-rada.gov.ua/control/main/uk/publish/category/32826 [in Ukrainian].
25. State Treasury Service of Ukraine. (2013). Annual report on budget implementation as of January 1, 2012. Retrieved from www.treasury.gov.ua/main/uk/doccatalog/list?currDir=166315 [in Ukrainian].
26. State Treasury Service of Ukraine. (2014). Annual report on budget implementation as of January 1, 2013. Retrieved from www.treasury.gov.ua/main/uk/doccatalog/list?currDir=187793 [in Ukrainian].
27. State Treasury Service of Ukraine. (2015). Annual report on budget implementation as of January 1, 2014. Retrieved from www.treasury.gov.ua/main/uk/doccatalog/list?currDir=217965 [in Ukrainian].
28. State Treasury Service of Ukraine. (2016). Annual report on budget implementation as of January 1, 2015. Retrieved from www.treasury.gov.ua/main/uk/doccatalog/list?currDir=257806 [in Ukrainian].
29. State Treasury Service of Ukraine. (2016). Report on budget implementation. Retrieved from www.treasury.gov.ua/main/uk/doccatalog/list?currDir=308375 [in Ukrainian].
30. Eurostat. (n. d.). Database. Retrieved from ec.europa.eu/eurostat/data/database.
31.. Cabinet of Ministers of Ukraine. (2002). On approval of the Concept application program-target method in the budgetary process (Order Nr 538-р, September 14). Retrieved from zakon3.rada.gov.ua/laws/show/538-2002-%D1%80 [in Ukrainian].
32.. Cabinet of Ministers of Ukraine. (2011). The question of optimizing the number of budget programs (Order No 292-р, April 6). Retrieved from zakon2.rada.gov.ua/laws/show/292-2011-%D1%80 [in Ukrainian].