BUDGET PLANNING AS AN IMPORTANT FACTOR IN ENSURING ECONOMIC GROWTH

Abstract

Budget planning is an important tool for effective management and use of budget funds. Given the limited financial resources, budget planning prevents waste, promotes economical use of budget funds, and the public administration system to fairly allocate financial resources to priority areas of economic, social, regional policy, to form a basis for sustainable economic development. The purpose of the study is to reveal the essence of budget planning as a tool for economic growth, highlight the existing problems in the budget planning system of Ukraine and find ways to improve and develop it. The study has found that in the structure of inefficient use of budget funds, a significant share falls on budget violations committed by participants in the budget process due to shortcomings in planning and lack of sound forecasting and planning. Thus, insufficiently effective budget planning is one of the reasons for inefficient management and use of budget funds. As a result, there is a causal link between the problems of budget planning and effective management and use of budget funds, which affects the dynamics of economic growth, the solution of socio-economic issues. It is noted that the program-target method in modern conditions is a reliable lever to influence the efficiency and effectiveness of budget expenditures, which strengthens the budget’s ability to form the basis of economic growth, as well as positively affects the effectiveness of fiscal policy in ensuring the welfare of citizens.