Analysis of the advantages and risks of the implementation of the medium-term budget planning mechanism in Ukraine

Abstract

The article examines the essence of medium-term budget planning as a budget plan for forecasted activities for the medium-term period, forecasting the number of funds needed to achieve the chosen goals in the medium-term perspective. A significant difference in the approaches to interpreting budget planning and forecasting has been determined. Attention is drawn to the fact that medium-term budget planning is only a forecast and does not involve setting exact figures. In particular, the elements of medium-term budget planning based on world experience were studied, as well as the results of the targeted implementation of such a mechanism. The main reasons for the rapid implementation of the medium-term budget planning mechanism for countries with high and low-income levels are indicated. Several advantages and features were analyzed, and attention was paid to the disclosure of factors that currently hold back the mechanism of implementing medium-term budget planning in Ukraine. Therefore, the purpose of the article will be to analyze the advantages and risks of implementing the mechanism of medium-term budget planning in Ukraine, justifying the need to develop a system of strategic medium-term budget planning in Ukraine as a tool for ensuring the effectiveness and efficiency of strategic management in the context of the modernization of the public finance system in Ukraine based on the study of foreign experience and assessments of domestic scientific developments. It is justified that analyzing the advantages of the studied mechanism, it should be noted that the effective introduction of medium-term budget planning will allow Ukraine to provide financial resources for the process of fulfilling strategic state tasks, increase the stability of state finances and budget discipline, and increase the predictability and efficiency of state investments.