Target-based public budgeting in Ukraine
Journal Title: Стратегія економічного розвитку України - Year 2018, Vol 42, Issue
Abstract
The sharp increase in demand for measurement and evaluation of the results of budget expenditures occurred in Ukraine almost half a century later than in the United States. The expansion in demand for productivity, which was due to limited resources of public funds, compared to political needs, led to search and reform the ways of budgeting. Their combinations could be predicted on the world experience basis. Ministry of Finance of Ukraine recently declared another reform with the medium-term planning and fiscal limits implementation within the program-target method. However, did not show any efforts about the key element of target-based budgeting supplying — legislative responsibility for the unreached settled targets. The performance method of budgeting is further enhanced by the KPI multiplied and implantation. Without the system of targets essential the medium-term planning and benchmarks implementation will not create an incentive for optimization, and hence development of the efficiency tools and improve the quality of public services. The best methods of performance are most effectively carry out by the performers themselves, if they are motivated. The target-based method of the budgeting can eliminate the main problem of the budgetary process in Ukraine — low motivation of managers and recipients of funds in their activities results. So the target-based method of public budgeting had been involved in Ukraine budget process, but still not complete properly yet. Correct and thorough budgeting methods separation, based on their features, can ensure for the desired result of using them considering the normative economics. This paper offers the concept of the target-based public budgeting to determine the essential budgeting tools in comparison with the world experience, and to ensure a more close connection of their using with the expected and desired results. The obtained results describe the possibilities of target-based budgeting will have been performed under the program-target method in Ukraine. The proposals on the prospects for using the target-based public budgeting method at the state budget level are formulated. The target-based budgeting obtain a possibility of the responsible spending units’ involvement into efficiency performance, which will grow with the further refine.
Authors and Affiliations
Teniana Zhyber
Keywords
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