Abstract

The article is devoted to the disclosure of the criteria of public utility under resource constraints by assessing the effectiveness of state budget expenditures. The purpose of the article is linked to its relevance and is determined by the role and functions of the state in the market economy: to provide society with a set of public goods determined by public choice. The article describes the current system of budget expenditures formation, based on measuring the degree of satisfaction with the use of budget resources in the form of public and private products through the apparatus of utility functions, and although in Russian practice there are no reliable methods for determining them, there is no reason to abandon this generally accepted research tool, as well as substantiates common problems and causes of inefficiency in the use of budgetary resources and determines the influence of the factor of public utility that produces the effectiveness of budget expenditures and allows for detailed analysis and a proper assessment. This study identifies the key problems of improving the efficiency of budget expenditures and the basic principles and approaches to assessing their effectiveness in the production of public goods. It is concluded that costs are determined by the amount of budget expenditures on the production and consumption of public goods and the level of negative social consequences, and this dependence is shown through the use of econometric methods of analysis.

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