Demography and social economy, 2016, 2(27):50-61
doi: https://doi.org/10.15407/dse2016.02.0050

Valery Novikov
Dr.Sc. (Еconomics), Prof., Head of Department
Ptoukha Institute for Demography and Social Studies
of the National Academy of Sciences of Ukraine
01032, Ukraine, Kyiv-32, Taras Shevchenko Blvd., 60
E-mail: valery.economy@mail.ru

THE PROGRAM BUDGET: INTERNATIONAL EXPERIENCE AND UKRAINIAN PRACTICE
Section: SOCIO-ECONOMIC DEVELOPMENT
Language: Ukrainian
Abstract: In the article the program budget is considered as an important tool for improving the efficiency of public spending in terms of local government reform. The international practice and evolution of application of budgeting by objectives in developed countries - members of the Organization for Economic Cooperation and Development is analyzed. Ukrainian experience of budget process and execution of budget programs is considered, the ways to improve the mechanism of their implementation on the basis of international achievements and scientific developments is proposed. The main attention is focused on the most pressing areas: potential opportunities, planning and indicators of evaluation of implementation of the program budget. The article shows that the implementation of methodology of common rules and procedures for the development and using of program budget on the basis of integrity allows for flexible management of budget funds distribution. In fact, the format of program budget provides a transition from the cost estimate to the program method of financing and extends beyond the financial and administrative independence of institutions in the management of their own funds. The program budget will not be competent without a clear delineation of functions of regions and the state. In the balanced approach to it as institutional tool, program budget can be a reliable instrument of compliance with government social guarantees and other social responsibilities that are constitutionally enshrined by the social nature of the state.
Key words: program budget, Management by Objectives, budget service, register of expense duties, targeted programs.
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