scholarly journals PROBLEMS OF BUDGET PLANNING IN CONDITIONS OF MACROECONOMIC INSTABILITY

2021 ◽  
Author(s):  
Oksana Posadnieva ◽  
Yana Rybitska
Keyword(s):  
The State ◽  
Medium Term ◽  
State Budget ◽  
Budget Planning ◽  
Developed Economies ◽  
External Threats ◽  
History Of ◽  
Budget Policy ◽  
Definition Of

The theoretical, methodological and practical principles of budget planning are considered in the work. The main economic and political factors that affect the quality of budget planning in a crisis economy are highlighted. The quality and efficiency of budget indicators planning during destructive events, internal and external threats are analyzed. The effectiveness of the state budget policy largely depends on effective budget planning. The principles of medium-term budget planning (Budget Declaration), which were introduced in our country and which aim to determine the general budget indicators for the next three years, should ensure the implementation of medium-term and long-term budget programs. However, the changing macroeconomic situation in the country and global economic challenges force the Budget Declaration to be revised annually. The main document of budget planning is the law on the State Budget of Ukraine for next year, and therefore the accuracy and completeness of its implementation depends on both medium-term budget planning and budget policy. The revenue part of the State Budget of Ukraine has a decisive influence on the formation expenditure’s part of the State Budget of Ukraine and a significant impact on the formation of local budgets. Therefore, the quality and accuracy of revenue planning is a necessary guarantee of socio-economic development of the state in the planned budget period. The execution of the revenue side of the state budget is also greatly influenced by foreign economic factors, which are not always predictable even for developed economies with a long history of budget risk forecasting, and for Ukraine sometimes become catastrophic, because our country does not have reserve funds as countries with developed economies. The purpose of the article is to consider and evaluate the theoretical and methodological and practical provisions of budget planning and develop on this basis practical recommendations for its improvement. In view of this, the paper revealed different approaches to the definition of «budget planning». The article considers the existing approaches to planning the revenue and expenditure side of the state budget. The authors identified factors that affect the quality of budget planning. The paper presents proposals for improving the efficiency of budget planning.

scholarly journals Medium-Term Budget Planning in Ukraine: The Problems and Prospects for Implementation

2021 ◽  
Vol 4 (519) ◽  
pp. 190-195
Author(s):  
A. V. Nechyporenko ◽  
Keyword(s):  
The State ◽  
Planning System ◽  
The European Union ◽  
Medium Term ◽  
State Budget ◽  
Budget Planning ◽  
Finance Management ◽  
Effective Implementation ◽  
Strategic Goals ◽  
Budget Policy

The article is aimed at disclosing and substantiating the peculiarities of the introduction and implementation of medium-term budget planning in Ukraine. Medium-term budget planning is defined as an approach to planning and managing public finances, which expands the horizon for the formation of budget policy for three to five years and allows to plan and forecast budget revenues and expenditures necessary for the implementation of strategic goals of the State budget policy in the medium term. The article considers the main functions of the medium-term budget planning system. It is noted that the European Union is assessing the development of medium-term planning, namely: the «Quality Index», which provides for the highest assessment according to five criteria. In Ukraine, medium-term planning accounts for about 65% of the expenditures of the national governance sector. Medium-term budget planning should become an important instrument for public finance management, which will not only allow to have a high-quality and sound financial plan for the medium perspective, but will also be the basis for the development of the State-based socio-economic policy. Both the advantages and the disadvantages of medium-term budget planning are considered, attention is also paid to the disclosure of factors that currently hinder the development of both the State itself and the mechanism of implementation of medium-term budget planning in Ukraine. The directions and measures that should be taken to ensure the development of medium-term budget planning in Ukraine are substantiated, as well as the positive consequences of the effective implementation and implementation of medium-term budget planning in the country are determined.

SPECIFIC OF MEDIUM-TERM BUDGET PLANNING IN UKRAINE IN THE CONDITIONS OF THE COVID-19 PANDEMIC

2020 ◽  
Author(s):  
Tetiana Koliada ◽  
◽  
Iryna Hoch ◽  
Keyword(s):  
Time Horizon ◽  
Well Being ◽  
The State ◽  
Medium Term ◽  
State Budget ◽  
Budget Planning ◽  
Basic Law ◽  
Budget Policy ◽  
The Government

The article is devoted to revealing the peculiarities of medium-term budget planning in Ukraine in the conditions of the coronavirus pandemic and the development of proposals for its improvement. Based on the study of the dynamics of forecast budget indicators on the three-year time horizon, it was proved that medium-term budget planning should be considered as a kind of precaution to avoid unreasonable future government spending, which can adversely affect the pace of economic development and the level of well-being of the population of the country. At the same time, the indicators of revenues and expenditures of the budget for the next years are only a forecast that is periodically clarified in the Budget Declaration by the government in accordance with the trends in the economy and taking into account the emerging various factors of influence. With the spread of COVID-19, adjustments were made to the process of formation and implementation of Ukraine’s budget policy. It is proved that the absence of a legislatively approved strategic plan for the development of the country, including in the sphere of public finances, is one of the reasons for moderate progress in achieving the defined goals. At the present stage of Ukraine’s development, there are long-term financial challenges in the budget sphere that cannot be solved within one budget year, which forces the government to move to medium-term budgetary domination for effective management of budget resources. As a result of the study, the internal and external challenges faced by Ukraine in connection with the need to overcome the consequences of the spread of COVID-19 were identified, the need to focus on ensuring strict compliance with the already established deadlines, criteria and procedures in the formation of the state budget and defining urgent goals of medium-term budget planning. The prospect of further research in this direction is to prove the need to introduce long-term budget planning in Ukraine or to extend the time horizon of medium-term budget planning to a five-year period, which should be based on the relevant legal provision of the Basic Law of the State or the Budget Code of Ukraine.

scholarly journals FOREIGN EXPERIENCE OF THE PARADIGM OF MEDIUM-TERM BUDGET PLANNING AND ITS APPLICATION IN UKRAINE

2020 ◽  
Author(s):  
Inna Zhuk ◽  
Svitlana Petrychuk
Keyword(s):  
Financial Management ◽  
The State ◽  
Planning System ◽  
Budget Process ◽  
Main Task ◽  
Medium Term ◽  
Budget Planning ◽  
European Experience ◽  
Effective Form ◽  
Budget Policy

The article examines the essence of medium-term budget planning, its tasks and stages of development in world, in particular European practice. The expediency of using a multi-year approach in the budget process and its advantages and disadvantages are proved. The peculiarities of medium-term budget planning of its function and methods of application in Ukraine are grounded. The toolkit and key elements to be implemented in the medium-term planning system according to the recommendations of the European Commission are described. The peculiarities of implementation of the program-target method as the most effective form of budgeting both at the state and regional levels are characterized. The directions of improvement of strategic financial management by means of introduction of budgetary medium-term planning in budgetary practice of Ukraine are determined. It is proved that the significance and urgency of medium-term budget planning in the budget process is quite significant, and most importantly, it is economically justified from the standpoint of all participants in budget relations. It is necessary to understand and note that the best international, in particular, European experience, should be a diagnostic indicator, not a template used to implement reforms. The main task is to develop procedures and mechanisms that will allow sector ministries and departments to plan expenditures based on reasonable assumptions about available budget resources and the state - to ensure transparency, flexibility and the possibility of operative adjustment of budget items taking into account changes in the budget policy of the country.

scholarly journals Program-target method in planning of state budget

2020 ◽  
pp. 125-132
Author(s):  
Oksana Lisnichuk ◽  
Liudmyla Medvidchuk
Keyword(s):  
The State ◽  
Economic Research ◽  
Budget Process ◽  
State Budget ◽  
Budget Planning ◽  
Social And Economic Development ◽  
Basic Parameters ◽  
Methodological Approaches ◽  
State Programs

Purpose. The aim of the article is the development of proposals for improving the methodology of program-targeted planning in the process of managing the State Budget of Ukraine. Methodology of research. The following methods of economic research are used in the article: comparative analysis, causal analysis, expert survey – in determining the effectiveness of the National Target Program “Drinking Water of Ukraine for 2011-2020”; tabular and graphical methods – for visual visualization of the analysed / obtained data; abstract and logical – in formulating conclusions from the study. Findings. It is established that the total number of state targeted programs is reduced in recent years in Ukraine, respectively, and the amount of their funding is reduced, and the quality of their development and implementation remains low. It is substantiated that the program-targeted approach in Ukraine is unalterable, as it most fully and consistently allows in practice to implement the principles of state budget planning. At the same time, certain restrictions in the use of program-targeted planning have been identified. The method of evaluating the effectiveness of budget programs at all stages of the budget process is proposed, which can be a supplement to existing methodological approaches to realistically assess the implementation of a program, correct planned results, clarify goals and basic parameters of state programs of social and economic development of Ukraine. Originality. Scientific and methodological approaches to assessing the effectiveness of budget programs have been further developed; in particular, proposals have been developed to improve the methodology of program-targeted planning in the process of managing the State Budget of Ukraine. Practical value. The results of the conducted study can be the basis for improving the current methodology for assessing the effectiveness of budget programs in Ukraine, as well as identifying opportunities for European practice of program-targeted budget planning. Key words: state budget, planning, program-target method, evaluation, efficiency, program.

scholarly journals Introduction and implementation of the medium-term budget planning system in Ukraine: the experience of Germany

2020 ◽  
Vol 66 (5) ◽  
pp. 78-92
Author(s):  
M. Dubyna ◽  
Yu. Honcharenko ◽  
O. Kalchenko
Keyword(s):  
Developed Countries ◽  
The State ◽  
Planning System ◽  
Budget Process ◽  
Medium Term ◽  
Fiscal Discipline ◽  
State Budget ◽  
Budget Planning ◽  
Advantages And Disadvantages ◽  
Rational Distribution

The need for effective budget planning in Ukraine in order to ensure effective and transparent implementation of the budget process generates the necessity for scientific understanding of the transfer of European practice of medium-term budget planning (MTBP) in domestic realities. Despite numerous developments of scientists concerning the possibilities of improving the procedure of medium-term budget planning (MTBP) in Ukraine, it is important to identify the features of its implementation based on the experienceof developed countries, which will allow us, taking into consideration the obtained results, to deepen further scientific and applied aspects of improving the medium-term budget planning system in Ukraine, to increase the efficiency of its implementation. One of such example is Germany's experience in introducing and implementing the medium-term budget planning. The main purpose of the investigation is the analysis of the budget planning in Ukraine, particularly, the factors influencing it, to determine the opportunities of the application of Germany’s experience concerning the introduction and implementation of the medium-term budget planning. The main advantages and disadvantages of using the MTBP procedure over the traditional (annual) budget are summarized in this paper. Factors of the MTBP development in Germany and other EU countries, particularly: effectiveness of regional practice; post-crisis period of national economies and the world economy; purposefulness of countries to the EU integration; significant amounts of public debt; implementation and enforcement of Directive 2011/85/EU in 2011 are established. Combination of all five preconditions available in Ukraine should ensure the accelerated development of the MTBP. It is determined that the use of German experience for the improvement of medium-term budget planning in Ukraine will contribute to rational distribution of budget resources between the budget system levels, increasing the level of predictability of the state budget policy, improving the macroeconomic balance, fiscal discipline and investment attractiveness of the country. It is noted that the non-fulfillment of the planned indicators of the state budget in Ukraine is due to the inefficient organization of the MTBP and the influence of macroeconomic environment factors.

scholarly journals Execution of the state budget of Ukraine in the conditions of the COVID-19 pandemic

2021 ◽  
Vol 2021 (9) ◽  
pp. 52-69
Author(s):  
Yurii RADIONOV ◽  
Keyword(s):  
Social Services ◽  
The State ◽  
Defense Spending ◽  
State Budget ◽  
Budget Planning ◽  
Significant Deficit ◽  
The Government ◽  
Social Expenditures ◽  
Budget Execution

The article analyzes the state of formation and efficiency of the State Budget of Ukraine. It has been established that budget expenditures exceed revenues and as a result, the budget has been formed over the last decade with a significant deficit, and the existence of a deficit leads to a movement in the "debt spiral". To implement the budget the Government is forced to borrow additional funds and attract them on acceptable terms, which has become increasingly difficult. Failure to receive the funds leads to late spending. The analysis of expenditures of the State Budget of Ukraine according to the functional classification is carried out, which testified to the main priorities of the state in modern conditions. Given Russia's aggression in the east of the country, it is logically justified to increase security and defense spending. However, it is advisable to review social expenditures, which are quite large in size and do not improve the quality of social services, on the contrary, restrain economic growth, the country's transition to an innovative model of development. In order to increase the efficiency of budget execution, the validity of macro indicators, it is advisable to introduce medium-term budget planning. Budget expenditures must be justified and balanced in order to achieve the most effective results of budget programs and the goals of the budget system of Ukraine. The study identified systemic shortcomings in the State Budget of Ukraine, which are repeated from year to year, as well as those that characterize the special year 2020 associated with the pandemic COVID-19. Emphasis is placed on the functioning of the domestic system of public financial control and its importance in reducing the volume of budget violations, the effectiveness of budget execution, promoting better functioning of the financial and budgetary system, ensuring sustainable dynamics of socio-economic development of the country.

BUDGET MANAGEMENT IN THE CONDITION OF THE TRANSITION FROM STRATEGIC TO MEDIUM-TERM BUDGET PLANNING IN TERRITORIAL COMMUNITIES

2018 ◽  
Author(s):  
Olha Rudachenko ◽  
◽  
Valeriya Yesina ◽  
Natalia Bibik ◽  
◽  
...  
Keyword(s):  
Financial Management ◽  
Local Governments ◽  
The State ◽  
Budget Management ◽  
Medium Term ◽  
State Budget ◽  
Specific Level ◽  
Budget Planning ◽  
Progressive Development ◽  
Organization And Management

To the problems of budget allocation management in the transition from strategic to medium-term budget planning in territorial communities are devoted in the paper. It is proved that in the conditions of modern transformational changes, which are currently taking place in Ukraine, more and more attention is paid to the problems of coordination and control of actions of the state, economic entities and citizens in order to achieve strategic goals in the socio-economic development of territorial communities, regions and countries. The need for such actions is related to the further progressive development of the budget system of Ukraine. Budget management is considered as one of the directions of financial management. Budget management acts as a mechanism for managing the distribution of budget funds at the level of local governments and the state as a whole. Based on the budget (state budget and local budgets), each financial plan solves the problem of organization and management of budget funds at a specific level of government. The basic principles of effective budget management are offered. The main goals and principles of budget planning are presented. In Ukraine, the community has developed key recommendations for the transition to its own medium-term budget planning. Local self-government bodies of territorial communities can already initiate and start the process of strategic budget planning to ensure a rapid transition to medium-term budget planning in territorial communities. These include: application and use of techniques and methods of strategic self-management; formation of normative base of strategic and program documents; improving the organizational structure of territorial communities` financial management; application of financial management methods in the transition to condominiums; integration of annual budgets into medium-term priorities.

scholarly journals TOOLS OF COUNTERACTION OF BUDGET SECTOR DEVELOPMENT THREATS

2017 ◽  
pp. 31-36
Author(s):  
Olena Kovpak
Keyword(s):  
System Analysis ◽  
Synthesis Method ◽  
The State ◽  
Negative Effects ◽  
State Budget ◽  
Internal Factors ◽  
Economic Changes ◽  
External Threats ◽  
Analysis And Synthesis ◽  
Budget Policy

Introduction. Significant social and economic changes, which are taking place in Ukraine, are caused by external and internal factors. Under certain conditions, they can have both positive and negative effects, and present a real threat. The provision of budgetary and national security of the state can become the effective counteraction to them. Purpose. The aim of the research is to clarify the essence of threats to budget security of the state; to allocate the internal and external threats; to study the existing ways of prevention and elimination the threats to state budget security. Method (methodology). To achieve this goal we have used the method of analysis and synthesis, method of induction and deduction, method of analogy and method of system analysis. Results. Interpretation of the category "threats to the budget security of the state" has been formulated. The notions of "threat", "challenges", "danger" and "risks" have been investigated. Internal and external threats have been defined. The structure of the functions of protection from threats has been characterized. The means of counteraction to financial security threats, generated by the imperfect budget policy of Ukraine have been estimated.

BUDGET MECHANISM: CHALLENGES OF TODAY

2021 ◽  
Vol 1 (21(49)) ◽  
pp. 94-99
Author(s):  
Inna Servatynska
Keyword(s):  
Health Insurance ◽  
Public Debt ◽  
The State ◽  
Financial Resources ◽  
Pension Insurance ◽  
State Budget ◽  
Macroeconomic Forecasting ◽  
Budget Planning ◽  
Compulsory Health Insurance ◽  
Definition Of

The definition of "budgetary mechanism" was analyzed in the article. It is described as a form by which the fund of financial resources is managed by influencing economic entities. The components of the budgetary mechanism that do not function effectively and lead to cyclical consequences in particular, the deficit of budget funds, tax pressure on taxpayers and, as a consequence, the accumulation of public debt, are identified. The shortcomings of certain components of the budget mechanism are substantiated, in particular: budget planning and forecasting; as analysis showed, are carried out inconsistently with each other. Thus, the State Budget of Ukraine is formed not depending on the capacity of the economy and its subjects, but depending on the needs of passive budget items. Passive budget items are growing systematically. There are a number of remarks on the applied forms of the budgetary mechanism, for example, payment of taxes and customs payments to the budget is ineffective, because a significant share of taxes is in the "shadow". Therefore, the amount of shadow budget funds is 30%, including smuggling 9.3%, payment of salaries in envelopes 5%, offshore schemes 3.6%, conversion centers 1.8%. The reasons for the inefficiency of the budgetary mechanism in terms of legal support are systematic changes in legislation, which are sometimes caused by lobbying motives. Ways to improve the budgetary mechanism are identified, for example, comparison of macroeconomic forecasts and budget planning; involvement of business in the processes of macroeconomic forecasting and budget planning; de-shadowing of the economy, including transparent payment of salaries through the implementation of a progressive taxation; payment of customs duties; State budget discharge through the introduction of compulsory health insurance and additional pension insurance levels.

scholarly journals THE ROLE OF MACROECONOMIC PROGNOSES IN THE PLANNING OF THE STATE BUDGET

2010 ◽  
Vol 1 (2) ◽  
pp. 380
Author(s):  
Ērika Žubule
Keyword(s):  
The State ◽  
Budget Process ◽  
State Budget ◽  
Budget Planning ◽  
State Finance ◽  
State Income ◽  
Budget Policy ◽  
The Government ◽  
Main Component

Topicality of the scientific research can be justified by the fact that the development of any country in economical and social sphere is influenced by the policy of the government. Its main component is a fiscal or budget policy, which includes both taxes and government expenses that are called state finance. An essential issue of state finances is the comprehension of procedures related to the budget formation as they determine the mechanism of formation and use of funds necessary for the government. An important stage in the budget process is a budget planning, when possible state income is predicted and financial resources necessary for carrying out government functions are allocated. In the article the author evaluates the role of macroeconomic prognoses in the planning of the state budget in Latvia and offers the possibilities of improvement in the economic and fiscal activities prediction.

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