IMPROVING THE EFFICIENCY OF BUDGET EXPENDITURES IN THE CONTEXT OF ECONOMIC TRANSFORMATION

Abstract

The current system of budget expenditure management is imperfect and does not meet modern society's demands to improve living standards and welfare. At the same time, in the conditions of economic transformations, ensuring the growth of the national economy, increasing production volumes, GDP, completing budget decentralization, introduction of energy-saving technologies, etc. remains a priority. In this situation, the issue of effective management and use of budget expenditures remains relevant. The author has developed practical recommendations for optimizing the structure of budget expenditures, increasing their efficiency to ensure sustainable dynamics of socio-economic development of the country. The economic essence of budget expenditures, economic components of their formation, classification on the basis of the main administrator of funds, budget programs, functional purpose are revealed. The general characteristic of expenses of the consolidated budget for 2016-2020 on a functional classification is given. The analysis showed that expenditures on economic activities, as well as expenditures on health care and defense of the country due to the events in the east of the country are growing at a steadily high rate. However, in 2020, almost 7.0 percent less (for each sector) was allocated to environmental protection and housing and communal services than in the previous 2019, which is evidence of the government's lack of attention to these issues. It is emphasized that the structure of budget expenditures changes depending on their role in the economy, increasing the economic potential of the country, the amount of tasks facing the country at the appropriate stage of its social development. Taking into account the international experience of countries with market and transformational economies, practical measures are proposed to increase the efficiency of budget expenditures, optimize their structure. This will make it possible to pursue a balanced financial and budgetary policy, increase the quantitative and qualitative indicators of socio-economic development of the country, the level of welfare of the population, ensure the stability of the financial system, the stability of social development.