Formation of budget expenditure as a component of social development

  • Valentyna Makohon Kyiv National University of Trade and Economics
  • Iryna Adamenko Kyiv National University of Trade and Economics
Keywords: public finances, budget, budget system, budget policy, budget expenditures, program-target method

Abstract

Relevance of research topic. The development and implementation of effective policy in the field of financial and budgetary relations is a powerful tool for influencing the country's socio-economic development. Accordingly, ensuring effective influence on the pace and quality of economic growth requires the improvement of the system of budget expenditures as a component of social development taking into account the strengthening of globalization processes. Formulation of the problem. With the acceleration of the pace of financial and economic globalization, its increasing influence on the system of public finances and its components, the issues of increasing the efficiency and effectiveness of fiscal policy regarding the expenditure part of the budget are urgent, which requires further scientific research of the theoretical and applied aspects of the formation of budget expenditures as a component of social development. Analysis of recent research and publications. The problem of the formation and implementation of budget policy regarding the expenditure part of the budget, its impact on socio-economic processes is currently quite widespread in scientific research. These are works by well-known domestic and foreign scholars: J. Buchanan, P. Samuelson, J. Stiglitz, T. Bogolib, L. Lisyak, I. Lukyanenko, A. Mazaraki, V. Sidenko, I. Chugunov and others. Selection of unexplored parts of the general problem. The above-mentioned issues are actualized in connection with the strengthening of globalization processes, the adverse external and internal economic environment, which requires the solution of a number of specific tasks related to increased efficiency of the distribution and use of public financial resources, improvement of the budget policy of Ukraine in relation to the formation of budget expenditures. Setting the task, the purpose of the study. The research objective is to reveal the role of the expenditure part of the budget in ensuring social development, to reveal the features of the budget policy regarding the formation of the expenditure part of the budget. The purpose of the study is to substantiate the priority tasks of the budget policy regarding the formation of budget expenditures and the improvement of their architectonics in the context of institutional transformations. Method or methodology for carrying out the research. The article uses a set of methods of scientific research: system approach, statistical analysis, structuring, analysis and synthesis, etc. Presentation of the main material (results of work). The role of the expenditure part of the budget in ensuring social development is determined and the priorities of the budget policy regarding budget expenditures formation, improvement of their architectonics in the context of institutional reforms are substantiated. The analysis and estimation of the structure of expenditures of the consolidated budget of Ukraine in terms of functional and economic classification, payments on repayment and servicing of the state debt are carried outThe field of application of results. The results of this study can be applied in the process of formation and implementation of the budget policy of Ukraine. Conclusions according to the article. The development of public finances depends on the direction of transformation of the formation of the expenditure part of the budget in line with changes in the socio-economic environment. The budget strategy for planning the expenditure part of the budget, its structure contributes to a balanced distribution of national income is substantiated. At the same time, the relevant strategy should be based on qualitative assessment and monitoring of the development trends of the domestic economy and aimed at ensuring the innovative activity of production. In the context of transformational transformations, the task of optimizing budget expenditures and ensuring a sufficient level of their flexibility based on economic cyclicality and macroeconomic situation in the country are important. The article defines the strategic priorities of budget policy regarding the formation of budget expenditures as a component of social development.

Downloads

Download data is not yet available.

References

1. B’iukenen, Dzh. M. & Mashreiv, R. A. (2004). Suspilni finansy i suspilnyi vybir: dva protylezhnykh bachennia derzhavy; [Public finances and social choice]. Kyiv: Vyd. dim «Kyievo-Mohylianska akademiia, 176 s. [in Ukr.]

2. Blaug, M. Mitchel & Uesli Kler (2008). 100 velikikh ekonomistov do Keynsa [Great Economists before Keynes: An introduction to the lives & works of one hundred great economists of the past], SPb. : Ekonomikus, 218–221. [in Rus.]

3. Keyns, Dzh. M. (2012). Obshchaya teoriya zanyatosti, protsenta i deneg; [per. s angl.]. M. : Gelios, 352 s. [in Rus.]

4. Bogolib, Т. М. (2013). The public sector of finance economy in the modern world. Equilibrium, 1, 76–89. [in Eng.]

5. Zapatrina, I. V. (2007). Biudzhetnyi mekhanizm ekonomichnoho zrostannia [Budgetary mechanism of economic growth] : monohrafiia. Kyiv : In-t sots.-ekon. Stratehii, 528 s. [in Ukr.]

6. Lysiak, L. V. & Salnykova, T. V. (2017). Napriamy vdoskonalennia biudzhetnoi polityky Ukrainy v umovakh detsentralizatsii [Directions of improvement of fiscal policy of Ukraine in conditions of decentralization]. Naukovyi pohliad: ekonomika ta upravlinnia, 42–56. [in Ukr.]

7. Chuhunov, I. Ya. & Makohon, V. D. (2007). Teoretyko-metodolohichni zasady perspektyvnoho prohnozuvannia dokhodiv mistsevykh biudzhetiv [Theoretical and methodological principles of perspective forecasting of local budget revenues]. Naukovi pratsi NDFI, 2. 3–14. [in Ukr.]

8. Maksiuta, A. A. & Chuhunov, I. Ya. (2012). Biudzhetna skladova suspilnoho rozvytku [Budget component of social development], Visnyk KNTEU, 3, 45–54. [in Ukr.]

9. Pro pershocherhovi zakhody z rozvytku mistsevoho samovriaduvannia v Ukraini na 2017 rik: Ukaz Prezydenta Ukrainy vid 07.12.2016 № 545/2016 [On Priority Measures for the Development of Local Self-Government in Ukraine for 2017: Decree of the President of Ukraine dated 07.12.2016 № 545/2016]. URL: http://zakon3.rada.gov.ua/laws/show.

10. Pro zatverdzhennia serednostrokovoho planu priorytetnykh dii Uriadu do 2020 roku ta planu priorytetnykh dii Uriadu na 2017 rik: Rozporiadzhennia Kabinetu Ministriv Ukrainy vid 03.04.2017 № 275-r. [On approval of the medium-term plan of the Government's priority actions by 2020 and the plan of priority actions of the Government for 2017: Order of the Cabinet of Ministers of Ukraine dated 03.04.2017 № 275-p]. URL: https://www.kmu.gov.ua/ua/npas/249935442.

11. Pro dobrovilne ob’iednannia terytorialnykh hromad: Zakon Ukrainy vid 05.02.2015 № 157-VIII [On Voluntary Association of Territorial Communities: Law of Ukraine dated 05.02.2015 № 157-VIII]. URL: http://zakon3.rada.gov.ua/laws/show/157-19.

12. Pro zatverdzhennia Poriadku provedennia Derzhavnoiu audytorskoiu sluzhboiu, yii mizhrehionalnymy terytorialnymy orhanamy derzhavnoho finansovoho audytu vykonannia biudzhetnykh prohram: Postanova Kabinetu Ministriv Ukrainy vid 12.05.2007 № 698. [On Approval of the Procedure for conducting by the State Audit Office, its interregional territorial bodies of the state financial audit of execution of budget programs: Resolution of the Cabinet of Ministers of Ukraine dated May 12, 2007 № 698]. URL: http://zakon2.rada.gov.ua/laws/show/698-2007-%D0%BF.

13. Pro Osnovni napriamy biudzhetnoi polityky na 2018–2020 roky: Proekt Postanovy Kabinetu Ministriv Ukrainy vid 15.06.2017 № 6591 [About the Main Directions of Budget Policy for 2018-2020: Draft Resolution of the Cabinet of Ministers of Ukraine dated June 15, 2017 № 6591]. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=62047.

14. Biudzhetnyi kodeks Ukrainy: Zakon Ukrainy vid 08.07.2010 № 2456–VI. [The Budget Code of Ukraine: Law of Ukraine dated 08.07.2010 № 2456-VI]. URL: http://zakon.rada.gov.ua

15. Ofitsiinyi sait Ministerstva finansiv Ukrainy [Official site of the Ministry of Finance of Ukraine]. URL: https://www.minfin.gov.ua/.]

16. Ofitsiinyi sait Derzhavnoi sluzhby statystyky Ukrainy [Offical web site of the State Statistic Service of Ukraine]. URL: http://www.ukrstat.gov.ua.

Author Biographies

Valentyna Makohon, Kyiv National University of Trade and Economics

Makohon Valentyna, Candidate of Economic Sciences, Senior Researcher Associate Professor of the Department of Finance

Iryna Adamenko, Kyiv National University of Trade and Economics

Adamenko Iryna, PhD in Economics, Senior Research Fellow at budget system division of Research Financial Institute

Published
2019-03-01
How to Cite
Makohon, V., & Adamenko, I. (2019). Formation of budget expenditure as a component of social development. University Economic Bulletin, (40), 140-147. https://doi.org/10.31470/2306-546X-2019-40-140-147
Section
Finance, Monetary Circulation and Credit