EXPENDITURES OF LOCAL BUDGETS: ANALYSIS OF MAJOR TRENDS OF FINANCING AND DIRECTIONS OF IMPROVEMEN
The article analyzes the financing of local expenditures for the past eight years. The analysis identified the following main tendencies as social orientation of expenditures caused by the transfer of a large number of responsibilities to the local level in accordance with the principle of subsidiarity, the implementation of financing mainly current expenditures, while the share of capital expenditures varies between 6-9% in recent years. Factors, that impede the development of the regions of our country, have been defined.
The author researched the question of forming the budget development for implementation of socio-economic development programs and strengthen the material and financial base of local governments. The main aspects of the State Regional Development Fund have been defined. This Fund is the part of the general fund budget and it is used for the implementation of investment programs and projects of regional development.
The author considers the necessity of further spread of program- target method at the local level, especially in terms of decentralization and local government reform in Ukraine. In today’s realities important task is to ensure the development of regions and provision of quality public services. The author analyzed the indicators of result of budget program and identified the possibility of quantitative assessment. Considered the indicators of efficiency and found when the budget program can be effective. Revealed the importance to develop criteria for evaluating the effectiveness of the authorities’ activity. This helps to determine the effectiveness of their work, achieve greater interaction with the public, to make the budget process more transparent for the possibility to control the use of public funds.
In case of this investigation the author concluded that it advisable to change the methodology of assessment of budget programs, introduction of scientifically based indicators that truly reflect the effect resulting from the implementation of a program. The assessment of budget programs implemented at the local level must be conducted comprehensively. This will help to achieve positive results: achieving certain social effects, overcoming imbalances in development between regions, economic growth in general.
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Keywords: expenditures of local budgets, social spending, budget development, program-target method, indicators of result of budget program, efficiency |
MACROECONOMICS
Syvulska Natalia
PhD, Associate Professor, SHEI «Kyiv National Economic University named after Vadym Hetman»
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