A COMPREHENSIVE APPROACH TO THE ASSESSMENT OF THE BUDGET EFFICIENCY OF THE TERRITORIES

Abstract

One of the main problems of today is the inability of local self-government bodies to exercise their powers at the expense of their own budget resources. Unfortunately, most local budgets are not provided with sufficient amounts of own funds, that is why the search for ways to form a powerful financial base of local authorities is more relevant than ever. According to the principles of the program-target method of budgeting, it is the diagnosis of the budgetary efficiency of territories that is the key goal of evaluating the implementation of regional policy and improving the efficiency of the use of budget funds. The lack of a comprehensive vision of the mechanism of turning budget decen-tralization into a real tool for ensuring the improvement of territorial development is a certain obstacle that does not allow local authorities to fully satisfy the needs of the population in public goods. The article highlights the main tasks that must be solved by assessing the level of budgetary efficiency of territories, as well as the difficulties that appear in the process of such an assessment. In addition, the main requirements for the evaluation indicators of the territorial budget policy parameters are summarized. Indicators for evaluating budget efficiency are considered in terms of stra-tegic and dynamic development of territories. The generalization of methodological approaches to the topic of the study makes it possible to draw a conclusion about the need to improve the existing set of indicators and to form a more ob-jective diagnostic methodology that would provide an opportunity to comprehensively assess the level of budget effi-ciency of the territories of Ukraine in conditions of decentralization. In the conditions of decentralization reform in Ukraine, the issues of responsibility, efficiency and rationality of decisions taken by local self-government bodies are gaining particular importance. That is why the system of indicators for evaluating the budgetary efficiency of territorial development is aimed at increasing the responsibility of regional authorities for the financial decisions made, and should also become the basis for the formation of a system of encouraging regions to strengthen and increase their own financial base.