Project-Based Approach: Its Concept and Role in the Budget Planning System

Abstract

The introduction of the project-based approach into the practice of public finance management is necessitated by modern requirements for the state regulation of the social and economic sphere beginning with the processes of budget planning. The subject of research is the theoretical and methodological aspects of the project-based approach to the management of budget expenditures. The purpose of research was to determine the role and place of the project-based approach in the modern budget planning system. The paper proves that the project-based approach should be viewed as a part of budget programming. Along with that, the formulated specific features of the project-based approach make it possible to draw a boundary line between the concepts of project-based and program-target management of budget expenditures. The paper also analyzes the federal experience in using the project-based approach for planning budget expenditures. The results of the analysis point out the need for its further improvement and appropriate recommendations are proposed.