PROGRAM-TARGET METHOD: PROBLEMS AND DIRECTIONS FOR IMPROVING APPLICATION IN THE BUDGET PROCESS OF CITY TERRITORIAL COMMUNITY

Abstract

Objective. The objective of the article is to identify problems and directions for improving the application of the program-targeted method (PTM) in the budget process of the city territorial community. Methods. In the research process, the following general scientific methods and methods of cognition are used: methods of scientific abstraction, analysis and synthesis (for researching the theoretical aspects of the application of the program-targeted method, determining the main problems in the use of the program-targeted method in the budget process, developing directions for improving the application of the program-targeted method when forming and implementing local budgets), systematic generalization (to determine the principles of using budget funds, features and advantages of using the program-targeted method in the local budget), statistical analysis (to assess the effectiveness of budget programs of city territorial communities). Results. Based on the results of the conducted research, the essence of the program-targeted method and its advantages are determined (orientation on the solution of urgent community problems; the possibility of effective evaluation of the implementation of budget programs based on defined performance indicators; increasing transparency and access to information about the activities of local self-government; improving the skills of management personnel and ensuring financial independence of the community; improving the quality of budget policy; promoting sustainable development). An assessment of the effectiveness of the budget programs of the Kryvyi Rih City Territorial Community is carried out, and the problems of applying the program-targeted method in the formation and implementation of the budget programs of the Kryvyi Rih City Territorial Community are identified (lack of consistency between medium-term and strategic budget planning, a single methodical approach to evaluating the effectiveness of budget programs; imperfection of existing approaches to assessment of the PCM; lack of a clear connection between the purpose and tasks of the program and its name; the need to attract a large number of diverse resources; insufficient qualified specialists; limited public participation in the processes of developing budget programs; lack of a clear monitoring system), proposed measures to improve the application of software the target method in the budget process at the local level (ensuring a close connection between medium-term and strategic budget planning; introducing a unified approach to assessing the effectiveness of the (PTM); unification of calculations according to budget programs; revision of performance indicators and introduction of integral performance indicator, implementation of limit values for performance indicators; review of the approach to the naming of budget programs, development and approval of a specific list of budget programs; full transition to three-year program-targeted planning of budget programs; optimization of involved resources; ensuring active participation of the public during the formation and implementation of budget programs; improvement of the monitoring system).