Abstract
The consolidated state budget expenditures reflect the condition of performance by a country of its basic functions and allow defining priority directions for the implementation of state policy. Their optimal ratio allows satisfying the interests of citizens, business and society as a whole, and can provide a significant impetus for economic growth. The analysis of state budget expenditures using the example of Ukraine showed that their structure is unbalanced. Therefore, the purpose of the study was to find the necessary balance. The optimization of Ukraine’s state budget expenditures was carried out using the simplex method based on their structure from 2007 to 2019. Since the priorities of Ukraine’s strategic economic and political development are the implementation of the EU standards and norms, the structure of the EU’s state budget expenditures is chosen as a guideline for determining the optimal structure of expenditures. As a result, it is determined that in order to harmonize the structure of the Ukrainian budget expenditures with the approaches implemented in the European Union, minimal changes in public order spending are required. In addition, significant areas of funding include healthcare, economic activity, social protection and security. At the same time, intergovernmental transfers need to be significantly reduced, the amount of which should be revised after the completion of the financial decentralization reform.
Highlights
When forming the state budget expenditures, the main tasks are taken into account, which are determined by state policy in all areas of its implementation
Special attention should be paid to expenditures aimed at ensuring national functions and housing and communal services, as the coefficients of these items are the highest among those that have a direct impact on the integrated coefficient of structural changes in GDP by type of activity – 0.297 and 0.463, respectively
This imbalance can be offset by increasing the share of public spending on defense, public order, security and the judiciary, spiritual and physical development, education and inter-budgetary transfers, because these items have an indirect impact on the dependent variable
Summary
When forming the state budget expenditures, the main tasks are taken into account, which are determined by state policy in all areas of its implementation. Support for economic and social development, ensuring the state’s defense capabilities, protecting the interests of citizens and businesses, and creating safe living conditions, both in terms of public order and environmental safety, depend on their optimality and balance. The qualitative formation of state budget expenditures according to their functional content becomes the basis for developing a country’s balanced development strategy. The analysis of expenditures structure of Ukraine’s state budget showed its heterogeneity. Expenditures such as national functions, public order, safety and judiciary, social protection and social security, and inter-budgetary transfers have been a priority for the state over the past ten years.
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