Methodical instruments of evaluation of region’s budget maintenance
Journal Title: Регіональна Економіка - Year 2016, Vol 79, Issue 1
Abstract
Current economic situation in Ukraine is represented by significant asymmetry both in regional development and in budget resources availability. Therefore, maintenance of financial autonomy that directly depends on the level of local budgets revenues’ mobilization and their efficient use is one of the key problems of Ukrainian regions’ development. In this context the necessity of introduction of objective evaluation of self-sufficiency, balance and sustainability level of budget systems becomes of utmost importance. On this basis the feasibility of local government bodies’ budget policy can be considered. <br>The article aims to improve methodical instruments of analytical basis evaluation and forming in order to percept objective reality of region’s budget system functioning taking into account the key influence factors that change its development and in order to obtain available information on the goals and priorities of budget policy. <br>The article analyzes existing approaches to evaluation of region’s budget maintenance. The author pays special attention to the absence of distinct limits in the system of evaluation of «region’s financial condition», «region’s budget maintenance» and «region’s budget potential» as well as to the insufficient system of indicators that characterize the balance and sustainability of budget relations in the regions. On the basis of critical analysis and generalization the author proposes improvement of methodical approaches to evaluation of regions’ budget maintenance based on the method of comparative complex evaluation – Euclidean distances and grouping of indicators by separate evaluation directions, in particular: condition and balance of budget, inter-budget interaction, budget sustainability and debt burden (for the budgets of cities). It is stressed that individual indicators should be formed taking into account the following requirements: indicators of every group should represent certain (one) characteristics of the object under examination; close correlation links between the indicators should be observed within the group; instead, correlation links between indicators of different groups should be low. The author proves that the proposed approaches to analysis and evaluation of regions’ budget maintenance make it possible to consider the level of budget resources provision and possibilities of their use as well as to reveal budget risks and predict their neutralization measures. Budget analysis with the use of given instruments can be conducted at all levels of budget process and its results will serve as analytical basis in the practice of local self-governmental bodies.
Authors and Affiliations
Halyna V. Voznyak
Keywords
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