Abstract
Economic changes create a strong need for the reconsideration of the system of financial and budgetary knowledge and paradigms already created in developed countries regarding the possibility of their use in the countries with developing economies. In this article, the authors clarify that the process of formation of the efficient and mutually agreed budget policy with strategic tasks of the social and economical development of countries requires development of the budget strategy. Its essence is the dynamic realization of the system of goals, principles, directions, tasks of state authorities, co-ordination and adequacy of their long-term regulatory measures to internal and external changes in the economic environment and social transformations aimed at ensuring macroeconomic stability, accelerating economic growth and improving the well-being of the population. The principles of budget strategy development have been clearly defined: scientific substantiation; integrity; efficiency; systematic approach; adaptability; variability; interdependence; purposefulness; sociality; legitimacy. The share of government expenditures, budget deficit and public debt in the gross domestic product in the EU and Ukraine has been estimated. The priority directions of budget strategies in the conditions of economic transformations have been defined, in particular, regarding the increase of efficiency of public expenditures and establishment of restrictions on their level of growth; improvement of the mechanism for managing budget deficits, public debt and guarantees and reduction of their limits. The research has demonstrated a huge influence of the budget strategy on the social and economical processes and on the development of the social relations.
Highlights
Within the frames of globalization challenges, in order to promote a balanced macroeconomic stabilization process and sustainable economic development, issues of ensuring the coherence of the components of the public finance management system by developing a budget strategy are studied in much more detail and a lot more attention is paid to them both in theoretical developments and in methodological studies of various scientific schools
The av- to the European Commission’s predictions, the erage share of the budget deficit in GDP for the share of public expenditure in the EU GDP will period in question is less than 3% in countries increase by 1.5 percentage points over the period such as Luxembourg, Sweden, Estonia, Germany, from 2016 to 2070 and will make 26.9% (Table 3)
It’s effectiveness depends on how reasonable the budget strategy is
Summary
Within the frames of globalization challenges, in order to promote a balanced macroeconomic stabilization process and sustainable economic development, issues of ensuring the coherence of the components of the public finance management system by developing a budget strategy are studied in much more detail and a lot more attention is paid to them both in theoretical developments and in methodological studies of various scientific schools. The importance of developing a budget strategy is conditioned by the need to take into account long-term socio-demographic trends in the development of society and real economic opportunities, by the assessment of their impact on the sustainability and balance of the budget system. The global financial crisis has had a major impact on macroeconomic stability in countries with developed and transformational economies. The abovementioned facts have impacted and accelerated the processes related to the development and implementation of the developmental strategies of the countries, including the budget strategy
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