In the current economic situation in Ukraine, the ways of reforming and
improving the efficiency of public authorities are actively discussed. And in this sense,
the concept of results-based budgeting offers a new approach to improving the quality
of public finance management. There are several fundamental differences in the ROB
from the traditional budgeting, one of which is that the performance of the budget for
ROB is evaluated not only by the extent to which certain budget items have been
executed but also by how the original objectives and objectives were met. A special
system of indicators is developed and implemented specifically for this, which helps
to keep track of the degree of achievement of objectives and tasks, and to monitor the
efficiency of public expenditures. At the same time, the detailed regulation of
expenditures is eliminated, and the managers of budget funds are given full freedom of
action. This approach helps assessing the effectiveness of public expenditures,
increasing the level of responsibility of administrators and recipients of budget funds
for their effective use and, based on the obtained data, determine the best ways to use
available resources for the benefit of citizens. The basis for budget development should
consist of the clear objectives set for the policy and expected results, and budget
planning - to obtain a long-term framework. At the same time, the independence of
budget recipients at the disposal of funds should be accompanied by their responsibility
for the results of work.
Implementation of result-oriented budgeting is one of the areas for reforming the
budget sector in Ukraine. Reforming the budget process in this direction involves the
creation of a mechanism for planning of budget expenditures and the preparation of a
draft budget, in which the goals to be achieved as a result and the system of indicators
on which the monitoring of the degree of reach of the set goals will be determined in
advance and formalized; giving administrators and recipients of budget funds more
freedom in making decisions about the most effective ways of organizing work and in
choosing the structure of expenditures for achievement of the set goals, accompanied
by simultaneous increase of the responsibility of budget funds managers to achieve the
set goals by monitoring and evaluating the efficiency of their activities. It is anticipated
that the results of monitoring and evaluation will serve as the most important source of
decision making when planning the budget for the next year, including decisions to
stop financing certain types of costs for failure to achieve the goals. In accordance with
these principles, the main spending units during the preparation of the draft budget
should justify the volume and structure of their spending needs, formulating strategic
objectives, core tasks, internal and inter-agency programs. Programs developed in
accordance with the results-oriented budgeting principles should include the expected
results of quantifiable programs and the system of indicators for social and economic
efficiency, as well as their target values.
Budgeting is aimed at solving the following tasks:
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