achievement of the planned indicators. The results of such monitoring and evaluation
are the most important source of information for decision-making on planned
allocations during the preparation of the budget for the next year, including decisions
on the cessation of financing of certain types of expenses in case of failure to achieve
the set goals;
• introduction of an effective system of stimulation of civil servants and other
employees of the budget system, as well as heads of state bodies and their subdivisions
based on the results of the activity and the degree of personal contribution to achieve
such results [1, p.13-14].
It should be noted that the budget must fulfill three main tasks:
- use revised macroeconomic indicators. This can be achieved, as a rule, at the
expense of qualitative aggregate fiscal policy. In turn, this policy is intended to ensure
the stability of the tax and budget area (or control the level of deficits and debt
obligations) that is necessary for macro-financial stability. It should be noted that if
during the budgeting the level of debt goes beyond the permissible limits, financial
markets may lose confidence in the reliability of government loans. This could lead to
a sharp increase in interest rates, and the government will be forced to pay out their
loans, and in extreme cases, such a jump may lead to reluctance to lend to the
government. In addition to the fiscal sustainability, fiscal policies should play an
important role in stabilization policies, in particular by supporting the economy at the
expense of additional costs or lower taxes during a recession;
- identify the correct priorities for the expenditure side: this means allocating
funds by sectors and programs that are most effective in terms of meeting social needs.
This means, for example, that if a country faces a significant health problem, additional
funds should be provided in the budget to finance programs designed to address this
problem. As a consequence of this process, funds will be redistributed to these goals
from those sectors and programs that are not prioritized;
- to ensure the effectiveness and efficiency of services: this means, firstly,
ensuring the results of services provided by the government, and secondly, the creation
of a process for the development and management of these services, which maximizes
their effectiveness. It should be noted that the purpose of the result-oriented budgeting,
is the mandatory implementation of the third and fourth of the above tasks. Thus, the
main emphasis is on efficiency and effectiveness. With the help of effectiveness, one
can understand the extent to which the service provided by the government really
brings benefit that it must bring to the public. That is, the performance measures to
what extent the program achieves the planned results. Efficiency means providing
services at the lowest possible price without compromising their quality. That is,
efficiency means the maximum possible reduction in losses during production and the
provision of public services.
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