Pohribna N.
Candidate of Economic Sciences, Associate Professor of the Department of
Finance, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine
Pysmenna M.
Candidate of Economic Sciences, Associate Professor, Dean of the Faculty of
Management, Kirovohrad Flying Academy of National Aviation University,
Kropyvnytskyy, Ukraine
Yuvzhenko N.
PhD Student of the Department of Finance, Taras Shevchenko National
University of Kyiv, Kyiv, Ukraine
FEATURES OF APPLYING RESULTS-ORIENTED BUDGETING
IN UKRAINE
Introduction. Public finance management is an important part of fiscal policy
and is largely determined by the state of the budget process, the planning, approval and
execution of the budget, as well as the control over its implementation. However, the
system of state management of financial resources of the state, built on the expense
model of budget planning, does not meet the current needs of the country. Such a
situation leads to the introduction of such a tool for increasing the efficiency of public
expenditures as result-oriented budgeting. An important resource for increasing the
efficiency of public expenditures is reducing the cost of providing public services,
reducing the share of administrative costs in the overall structure of public sector
spending, and improving the quality of services provided.
The results-oriented budgeting (ROB), as part of the global public sector
governance concept, has a 60-year history. The appearance of a budget-based
budgeting result-oriented approach is associated with the creation in 1947 of the
Hoover First Commission in the United States. The format proposed by the
Commission for submitting the federal budget (called “performance budget”) endorsed
the emphasis on public spending on public functions, performance and achievement.
As O. Teterina [8, p.88-92] notes, “performance budget” was supposed to reflect not
so much the structure of expenditures in terms of types of expenses (labor
remuneration, procurement of goods, rental of premises, etc.), but expected result from
the implementation of programs or the performance of specific government functions.
Since the 1950s, many countries are actively working to improve the efficiency
of public expenditures by introducing a concept-based budgeting framework, or
individual elements, into public sector management and public finance.
The United States is the country where the first attempt to implement the result-
based budgeting elements was made. In 1949, Truman’s Hoover Commission was
- 628 -