Budget Execution Research Articles

Road Quality in Indonesia: Is it Linked to Special Allocation Funds and Political Competition?

This study aims to determine the relationship between decentralization,viewed from a fiscal and political perspective, and the quality ofroad infrastructure in Indonesian regions. This study uses paneldata of 32 provinces in Indonesia in the 2011–2018 and appliedpooled ordinary least square (OLS) estimation with individual fixedeffectsto capture time-variable estimation. Findings/Originality: Theresults show that special allocation funds (DAK) did not significantlyimprove the quality of damaged roads, although the correlation wasnegative. The apparent improvement in the damaged-road ratio ispresumed to be because the government is currently more focusedon the physical construction of roads than on maintenance, so thelevel/quality of road maintenance is still not optimal. The politicalcompetition was found to be negatively related to the improvementof the damaged-road ratio, indicating that political competitionimproved the quality of budget execution in road infrastructureprovision.How to Cite:Saragih, P. N., & Khoirunurrofik , K. (2022). Road Quality in Indonesia: Is It Linked to Special Allocation Funds and Political Competition? Signifikan: Jurnal Ilmu Ekonomi, 11(1), 57-72. https://doi.org/10.15408/sjie.v11i1.21090.

Solving Collective Action Problems under Separated and Shared Powers: The Benefits of Consolidating Executive Budgetary Powers, 1895–1940

The Budget and Accounting Act of 1921 consolidated executive budgetary powers within the presidency and Congress. I evaluate how the Act reforms altered the nature of executive budgetary influence, using an original historical database from fiscal years 1895 to 1940. I show that these reforms were not only consistent with both political branches’ objective to empower presidents to rein in profligate executive budget proposals under the decentralized budgetary system but also afforded presidents greater budgetary influence when seeking higher funding levels relative to Congress. This mutually beneficial power-sharing arrangement between the president and Congress stands in contrast with existing accounts that these reforms favored one branch at the expense of the other. Finally, I offer evidence that this arrangement was made possible by solving collective action problems within the executive branch that reduced the capacity of seasoned agency heads to shape budgetary outcomes during the postreform era.

Budgeting practices of Korean tourist hotels: Comparison of upscale hotels and budget/mid-priced hotels

This study explores Korean tourist hotel budgeting practices and compares budgeting practices of two hotel categories: upscale hotels and budget & mid-priced hotels. Its justification is the lack of research on the related topic. To achieve the purpose of this study, a questionnaire consisting of questions related to budget planning, execution, and control stages was sent to 183 Korean tourist hotels, 78 of which (36 upscale and 42 budget & mid-priced hotels) participated in this survey. To analyze survey responses, frequency analysis, descriptive statistics, and t-tests were employed to determine the similarities and differences in the budgeting practices between the two hotel categories. The results indicated that the budgeting practices of these hotel categories were significantly different from each other. The main differences between the two hotel categories were identified in the practices of budget manual existence, budget period, long-term budget existence and its period, budget execution stage, and budget variation analysis frequency and its examiners.

Performance Management of University Financial Budget Execution Relying on Comprehensive Budget Management Strengthening Model

In order to improve the effect of college financial budgeting, this paper combines the comprehensive budget management strengthening model to construct the school financial budget execution performance management model and selects data envelopment analysis (DEA) and stochastic frontier analysis (SFA) as empirical analysis methods. Moreover, this paper puts forward the idea of analyzing the proportion of investment funds and obtains the optimal distribution proportion through mathematical methods. Under the circumstance that the total funding input remains unchanged, this paper adjusts the investment ratio to improve the efficiency of the colleges and centers in the school and combines actual needs to construct an intelligent model of financial budget execution performance management for colleges and universities that relies on the comprehensive budget management enhancement model. In addition, the model effect verification is carried out on this basis. According to the research, the energy system proposed in this paper plays an important role in the performance management evaluation of the financial budget implementation of colleges and universities and can effectively improve the effect of college financial budgets.

Government Budget Absorption: A Study on The Reallocation and Refocus of the COVID-19 Budget

Low absorption of Covid 19 budget causes problems for the government. This study examines the influence of regulation, budget execution, utilization of information technology, and leadership commitment to the absorption of the Covid 19 budget in the Provincial Government of Riau. The population in this study were all Regional Apparatus Organization (OPD) in the Riau Provincial Government. The sampling technique used is purposive sampling with OPD criteria using the Covid 19 budget. Respondents in this study are budget managers. A total of 68 people participated in this study. Data analysis with PLS shows that regulation, budget implementation, and the use of information technology affect the absorption of the Covid 19 budget. Meanwhile, the leadership's commitment does not affect the absorption of the Covid 19 budget. This research has contributed to the Riau Provincial government in formulating budget use policies.

CIVIL SERVICE AS A CATALYST FOR SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIA

The primary function of the civil service is formulation and implementation of governmental policies in line with the welfare of the citizens, sustainability of the state, regulating commercial operations, and providing social service. Civil service plays a crucial role in any country's economic development, particularly in Nigeria where the public sector is directly involved in national development. It serves as a pivot for design and execution sustainable economic development programmes. This necessitated the civil service to adopt more management methods, develop the necessary managerial abilities, and adopt a new strategy that includes project management in order to secure and ensure sustainability. This study explored the role of the civil service as a contributor to Nigeria’s sustainable economic development. The methodology adopted was a documentary review and contextual analysis of past and current literature on the impact of civil service on sustainable economic development in Nigeria. The inefficiency and incompetency of the Nigerian civil service are evident due to the poor execution of the national budgets and public policies geared towards economic development. Furthermore, the unpredictability of the Nigerian political and economic sector and the high cost of doing business which is undermining investors' confidence is another important negative effect on Nigerian civil service performance in promotion of sustainable economic development. Therefore, for the Nigerian civil service to contribute to sustainable economic development it must be made more appealing and supported, modern equipment and technologies should be introduced across all levels of the civil service, continuous professional development should be made mandatory in the civil service, and appointment and promotion in the civil service must be based on merit and qualifications.

Development of treasury management of public procurement: problems and prospects

The subject of this study is the legal norms contained in legislation, other legal acts, as well as materials of law enforcement practice regulating the process of treasury management of budgetary funds. This article also analyzes the experience of legal regulation of the mechanism of treasury management of budgetary funds during public procurement, examines the gaps in budget legislation directly related to the topic under consideration.The purpose of this article is to consider the problems and prospects of the development of the Institute of the Federal Treasury in the Russian Federation. The reason for this study was multiple scientific discussions, which caused an ambiguous reaction from the legal community of Russia. The gaps in the budget legislation directly related to the topic under consideration are considered.The methodology. General scientific methods were applied in the framework of comparative, logical and statistical research and analysis of law enforcement and judicial practice in the field of treasury management of budget funds.The main results. A number of issues related to the chosen topic were considered. First of all, it is necessary to understand how the legal regulation of treasury management of budgetary funds is carried out. The form of legal regulation of treasury management differed from other forms and instruments of control the norms on treasury management were established annually by the federal law on the federal budget and acts of the Russian Government, Russian Ministry of Finance and the Federal Treasury adopted in pursuance of this federal law. Secondly, it is worth noting how the procedure for treasury management of budgetary funds during public procurement is built. The mechanism of treasury management provides for operations on personal accounts opened in the Federal Treasury with funds received from the relevant budget in the form of subsidies and budget investments, as well as funds directed to the execution of government contracts, contracts, the sourceof financing of which is the budget of the budgetary system of the Russian Federation. Thirdly, it is necessary to understand what prospects the institute of treasury management of public procurement has. Trends in the development of the institute of treasury management show that quantitative parameters will grow, including due to the use of "extended" treasury management and due to the spread of technological solutions to the level of subjects of the Russian Federation and municipalities.Conclusions. Treasury management of budgetary funds during public procurement is a new institution of budget law, a comprehensive budgetary and legal instrument of public administration, which is used at the stage of budget execution for expenditures to exercise financial control over the public procurement, contracts with legal entities and sole proprietors who are not participants in the budget process. In addition, treasury management is a tool with sufficient elasticity and relative "versatility". At its core, it allows you to strengthen control over the targeted and effective use of budget funds, ensure transparency and openness of procurement procedures and execution of state contracts; reduce unscrupulous suppliers in the chain of co-executors while ensuring proper execution of the state contract; increase financial discipline of the parties to the contract. It is also worth noting that treasury management minimizes some of the risks inherent in the use process. This institution should be considered as a system element in a larger mechanism of budget monitoring.

Influence of Budgetary Practices on Budget Performance of Local Government Authorities in Tanzania

The local government authorities (LGAs) in Tanzania were restarted in 1980 and since then the government has gone in different programs of reforming them. However, the implementation of budget in LGAs in Tanzania is failing to produce intended outcomes. This study investigates effects of budgetary practices on budget performance of LGAs in Tanzania. The study used survey research design carried out at Ilala Municipal Council. Data collected using questionnaire was subjected to Statistical Package for Social Science (SPSS) version 23 for running the quantitative analysis. The research adopted Exploratory Factor Analysis (KMO and Bartlett's Test of Sphericity), simple regression analysis and correlation analysis to investigate the influence of budgetary practices (measured by budget planning, participatory budget and budget execution) on budget performance (supported by efficiency and effectiveness) of LGAs in Tanzania. Findings of the study indicate that budget planning, participatory budget and budget execution are directly related and they have close relationship with budgetary performance. Among the three budgetary practices tested, it was found that budget planning is a significant driver of budget performance. This study has implication to various stakeholders and actors alongside budget operations especially in Tanzania as well as the research community, where it provides new insights relating to budget practices and performance metrics that can be used to accelerate budget performance of LGAs. Decision makers in LGAs should put more emphasis on enforcing policies that improve performance of budget operations by addressing the benefits and weakness experienced in the past.

Research on Speeding up Local Budget Execution Performance Audit-A Case Study of City S

Budget performance management and budget execution performance audit complement each other, and with the comprehensive layout of the budget performance management system, the layout of budget execution performance audit should also be accelerated. In addition, with the continued ravages of the New Crown Pneumonia epidemic and the strengthening of the trend of counter-globalization, China's basic strategy has shifted to expanding domestic demand, and the economic pressure on the government is enormous during the period of promoting sustained domestic economic growth. To alleviate this situation, it is extremely necessary to improve the efficiency and effectiveness of government budget funds use, so China must speed up the process of promoting the budget execution audit from truthfulness to effectiveness. This paper analyzes the current situation of budget performance management and budget execution performance audit in S city, and analyzes the unfavorable factors that may affect the overall layout of budget execution performance audit, including audit independence, performance evaluation index system, insufficient audit force, and proposes improvement suggestions accordingly.

Senior Public Management System in Chile (2004-2015): Analysis of its Effects on Institutional Performance Using Panel Data

This article explores the effects of a reform inspired by New Public Management with the objective of analyzing whether the incorporation of technical criteria in the selection system for Senior Public Management (SADP) in Chile generates positive effects on institutional performance. Using quantitative, public and objective information from 72 Chilean public services, for the period 2004 to 2015, five statistical models are estimated using data panel. The explanatory variable used is the length of tenure of the SAPD appointee, which accounts for accumulated experience. Five outcome variables related to institutional performance are used, one for each model: productivity, efficiency, annual budget execution, budget execution at the third quarter and compliance with performance indicators. The results show that there are only significant effects of the SADP on compliance with the performance indicators, which indicates that the political-technical system for the selection of top management in Chile has not had the expected results since its creation. One of the possible causes is the low time of permanence in the position, less than three years, which is not enough to achieve the required learning to contribute to the improvement of management and service provision.

РОЗМЕЖУВАННЯ ВІДПОВІДАЛЬНОСТІ ТА НАДІЛЕННЯ ПРАВ В СИСТЕМІ УПРАВЛІНСЬКОГО ОБЛІКУ

The article presents the results of the study on the essence of the process of delimitation of responsibilities and rights for the organization of management accounting in order to further generate information for project development and management decisions regarding the effectiveness of departments and enterprises as a whole. The structure of the three-level management system of the enterprise is given. The levels of delimitation of responsibilities and empowerment of managers at different levels of management of the enterprise are determined. It is established that appropriately defined levels of delimitation of responsibilities and empowerment provide an opportunity to increase the level of control and provide an assessment of the activities of individual managers, the state of achievement of the goals of the company and the company itself. Subdivisions are defined as centers of responsibility for individual components of the process of information formation for the management of the enterprise. The principles of organization of division of responsibilities and empowerment are highlighted. The information on the organization of the account on the centers of responsibility, its essence and a technique of the organization is resulted. The essence and concept of accounting by centers of responsibility are given. It is determined that the ability to manage has certain limitations. It is established that in the case of growing business and complicating its structure, there is a need to distribute decision-making powers between different levels of government. Delegation of decision-making powers means decentralization of management. The advantages and disadvantages of delegating authority are presented.The first step in the organization of management accounting for the centers of responsibility is the allocation of appropriate centers in order to consolidate responsibility. In the process of allocating centers of responsibility, first of all, the organizational and technological structure of the enterprise is taken into account, job descriptions, which establish the rights and responsibilities of specific employees. The main purpose of management accounting by responsibility centers is to assist managers in compiling reports on budget execution and evaluating performance.

O efeito dos traços dark triad na relação entre a pressão de obediência e a folga orçamentária,

ABSTRACT The aim of this paper was to evaluate the effect of personality traits on the relationship between obedience pressure and the creation of budgetary slack. Concatenating the dark triad personality traits and obedience pressure in a decision-making scenario relating to the creation of budgetary slack enables us to widen the investigation of factors associated with the practicing of budgetary slack. The relevance of this study lies in understanding how personality traits influence decision making under hierarchical obedience pressure in relation to the creation of budgetary slack, enabling us to measure and detect possible biases in managers’ decision making due to these factors, thus being able to predict or mitigate decisions in the organizational environment. It was verified that the practice of creating budgetary slack can be carried out independently of a hierarchical order and that personality traits influence decision making with relation to the execution and planning of budgets. The article makes theoretical contributions to the accounting area, enabling the advancement and deepening of the discussion of social aspects (obedience theory) and behavioral aspects (personality traits) associated with decision making relating to the creation of budgetary slack. The approach is quantitative and experimental (2 x 2 factorial design), using 82 accounting sciences students. The data were analyzed using Mann-Whitney and Kruskal-Wallis tests and binary logistic regression. It was found that, independently of being under obedience pressure, individuals with high dark triad personality traits were more inclined toward the creation of budgetary slack, demonstrating that the intrinsic personality traits of each individual have an effect over decision making. However, regarding obedience pressure, it was verified that there was no significant effect on the creation of budgetary slack. These results offer contributions to organizations, as their managers and teams do not practice slack due to obedience pressure scenarios, but rather according to personality traits.

Analysis and evaluation of the execution of local budgets of territorial communities of the Volyn region, as a component of ensuring their competitiveness

The reform of the local self-government system and budget decentralization in Ukraine resulted in the creation of full-fledged united territorial communities, which received additional budgetary powers and sources of filling budgets to ensure the achievement of sustainable development goals. Thus, UTC also has additional opportunities to attract investment for community development. In addition, there are growing opportunities to promote local businesses, the effectiveness of which depends on the filling of community budgets. Accordingly, there is an objective need to assess the effectiveness of the functioning of the united territorial communities in the first budget year after the completion of the main stage of decentralization. At the same time, based on the assessment of performance indicators of budget revenues and expenditures, as well as taking into account its surplus or subsidies, it is possible to make a conclusion about the effectiveness of budgetary and administrative reform. In addition, such analysis makes it possible to obtain data that can characterize the level of competitiveness of UTC in comparison with other communities in the region. The modern features of the functioning of the united territorial communities in the new budget conditions are considered in this paper. The volumes of receipts and expenditures of the general fund of budgets of UTC of Volyn region are investigated and analyzed. Comparison of revenues and expenditures of the general budget per capita is carried out. Based on the obtained results, the subsidy of the budgets of territorial communities is assessed. It is determined that in Volyn region only 21.6% of all united territorial communities have excess of revenues over expenditures or are unprofitable. Research on the territorial regularity of the location of subsidized and profitable UTCs, when in the northern districts of the region are located, mostly subsidized communities, and in the south – more profitable. Based on the analysis, a set of measures aimed at the overall increase of budget efficiency of territorial communities, which should ensure the overall growth of their competitiveness in the future is proposed.

Local budget expenditures through the prism of the war in Ukraine

The war in Ukraine significantly affected the financial and economic situation of communities, which affected the execution of local budgets. Therefore, the problems of improving the tools for the implementation of budget policy at the local level are being updated. The purpose of the article is to conduct a problem-oriented analysis of the current practice of executing local budgets and financing expenditures in the conditions of Russia's armed aggression in Ukraine. A problem-oriented analysis of the implementation of the local budget of Ukraine in the conditions of Russia's military aggression in Ukraine is carried out. Legislative initiatives related to the implementation of the budget process at the local level are analyzed. The surplus of consolidated local budgets for five months of 2022 is revealed. On the basis of the analysis, the following factors were singled out among the important ones for the implementation of planned indicators at the base level: consumer inflation, the growth of personal income tax (including due to the increase in payments to military personnel), the expansion of the system of simplified taxation, the cancellation of the reverse subsidy. Attention is focused on the significant reduction of local budget expenditures, especially development expenditures and the consequences for the development of communities. The article outlines the following problematic issues of the functioning of local self-government today: filling of local budgets, spending, and social support for the needs of internally displaced persons and their integration into new communities. The opinion about the expediency of increasing the expenditures in war conditions and providing benefits is substantiated taking into account the type of territory (depending on the course of hostilities). The need to improve the mechanisms of budgetary equalization of territories is emphasized.

ПОДАТКОВІ ДОМІНАНТИ ФІНАНСОВОГО ВИРІВНЮВАННЯ РОЗВИТКУ ТЕРИТОРІЙ В УМОВАХ ВОЄННОГО СТАНУ

Today, Ukraine and a few of European countries are faced with the acute problem of balancing the financial support of local socio-economic development. The introduction of military status in Ukraine has intensified procedures to rationalize financial support for the budgets of the united territorial communities, especially those located closer to the war zone. That's why, the study of theoretical and practical determinants of financial equalization is actual. The purpose of the article is to study modern aspects of effective use of financial equalization of territorial development, as well as substantiation of tax instruments to strengthen the fiscal potential of regions in the conditions of military status. The article highlights the objective reasons for financial equalization and outlines the forms of its implementation in Ukraine and some countries around the world. The accent is placed on the effects and risks of horizontal and vertical financial equalization. It is proved that the budgetary autonomy of the development of the united territorial formations is a key link in the combination of state and local economic policy. The role of tax regulation in inter-budgetary relations is investigated. It's proved, that stable tax potential is able to intensify the financing of priority requests for the development of the region (security, social protection, investment, innovation, infrastructure, etc.). The consolidation of the fiscal partnership in the conditions of military status was revealed in order to maintain the positive trends of budget revenues, in particular, due to the fulfillment of tax tasks and obligations. It's extremely important to ensure the prompt, proper and continuous execution of local budgets in the conditions of military status. Considerable attention in the article is paid to the proper ensuring of the tax capacity of the united territorial communities. The identifications of real and potential tax capacity of the territory makes it possible to rank it according to the level of realization of the fiscal potential of local authorities, which significantly improves the implementation of the principles of fairness and mobility of regional tax policy. Today, it's important to strengthen the tax capacity of the territory through the rational development of tax potential, because a favorable tax regime at the local level will produce investment effects and improve the socio-economic development of the region.

Government Integrated Financial Management Information System and Fraud Prevention in Nigeria

The government's integrated financial management information system is essential to improve fraud prevention in Nigeria. One of the most challenging obstacles confronting government sector has always been fraud prevention. According to studies, the integrated financial management information system has aided government budget planning, execution, and monitoring, as well as tracking, recording, and reporting revenues and expenditures in government offices and parastatals in other developing economies, in order to close any gaps and reduce the risk of fraud. The study examined the effect of government integrated management information system on fraud prevention in Nigerian. Survey design was adopted. One hundred and Thirty-Seven (137) copies of questionnaires were administered to government employees in the selected agencies and one hundred and thirty-three (133) were returned. Descriptive and inferential (Multiple regression) were used to analyse the data. The result of the finding shows that integrated financial management information has significant effect on fraud prevention in Nigerian public sector. Adj. R²= 0.64, F- statistics 35.862, P- value <0.000. The study concluded that integrated financial management information system has significant effect on fraud management. The study recommended that the federal government should maintain the integrated financial management system so that when power changes, they will continue to use the system that is already in place to avoid stagnating economic growth and development.

The Social, Economic and Financial Information of the Electronic Governments of Latin America

In recent years, the governments of Latin America have been modernized with Information and Communication Technologies and especially with the Internet, this process is known as electronic government “e-government”, that is how the electronic governments of Latin America disclose information about their administration and management, as well as the services they offer by interacting with citizens through their web pages. However, there is a lack of disclosure of social, economic and financial information, which is essential given the lack of transparency in population data, high levels of indebtedness, inflation, lack of liquidity, low levels of budget execution, among others, and that are in the interest of the citizen. In this understanding, this research aims to analyze to what extent and how social, economic and financial information is disclosed online by the Ministries of Economy and Finance. For this, it was necessary to establish a questionnaire and indices to create a ranking of the most transparent countries in Latin America in disclosing said information through their electronic governments. The results show that the most transparent ministries are Brazil, Mexico and Chile and the least transparent ministries are the Dominican Republic and Venezuela.

Development of the Input-Output Table for Compiling the Social Accounting Matrix

The Republic of Moldova lacks an updated Input-Output Table (IOT), which is necessary for compiling a Social Accounting Matrix and calibrating a Computable General Equilibrium model. The author’s goal is to estimate by economic, mathematical and statistical methods the IOT for 2019 using a IOT for 2014 as a reference. The author first defines an optimal classification of sectors present in IOT-2019 to ensure comparability with IOT-2014. Subsequently, the author reconciles data from National Accounts Statistics, Balance of Payments and budget execution reports to compile the IOT quadrant 1. For quadrants 2 and 3, the columns for which there are statistical data in the aforementioned sources are first determined, after which the missing parts are compiled formulating and solving a mathematical optimization problem, in which the objective function is minimization of structural differences between IOT-2019 and IOT- 2014.

Research on the Application of Improved Decision Tree Algorithm based on Information Entropy in the Financial Management of Colleges and Universities

In the era of information technology, the work relies on information technology to generate a huge amount of data and information. Among them, the financial data information of universities is growing exponentially, and the manual method of organizing data and extracting key information can no longer meet the requirements of financial data management of universities. Taking the financial management of higher education institutions as an example, it is difficult to grasp the progress of financial budget execution with frequent and complicated daily expenditure and income problems, and then it is difficult to execute correct decisions in the management. The study uses information entropy as the decision basis of decision tree in the financial management of higher education institutions. The higher the value of information entropy generated in financial management, the higher the prediction accuracy of the decision tree. The metric calculation method is introduced to obtain the information entropy as well as the information gain rate to predict the likelihood of problematic events. The study validates the performance of the improved decision tree with a dataset that achieves a maximum accuracy of 95% in the experiment. With the higher prediction accuracy, for the university financial management system, a decision tree for financial warning is established and the link between the current month's financial expenditure and the warning mechanism is analyzed, and finally the two common decision tree algorithms, (Iterative Dichotomiser3，ID3) ID3 and (Classification and regression tree，CART) CART, are compared with the algorithm proposed in the study. The mean square error and the sum of squared error metrics are used to conclude that the algorithm proposed in the study has better performance. By improving the existing decision tree algorithm, the study proposes a decision tree model based on information entropy, which aims to help decision makers to quickly and accurately distill relevant data and make correct decisions in a large amount of information data for more rational financial management.

Treasury support as a new tool of financial control in the conditions of digitalization of the economy

Introduction. The subject of this study is the legal norms contained in legislation, other legal acts, as well as materials of law enforcement practice regulating the process of treasury provision of budgetary funds. This article also analyzes the experience of legal regulation of the mechanism of treasury provision of budgetary funds, examines the gaps in budget legislation directly related to the topic under consideration. The purpose of this article is to consider the problems and prospects of the development of the Institute of the Federal Treasury in the Russian Federation. The reason for this study was multiple scientific discussions, which caused an ambiguous reaction from the legal community of Russia. The gaps in the budget legislation directly related to the topic under consideration are considered. Methodology. Within the framework of this article, general scientific methods were applied in the framework of comparative, logical and statistical research and analysis of law enforcement and judicial practice in the field of treasury support of budget funds. Results. Within the framework of this study, a number of issues related to the chosen topic were considered. First of all, it is necessary to understand how the legal regulation of treasury support of budgetary funds is carried out. The form of legal regulation of treasury support differed from other forms and instruments of control - the norms on treasury support were established annually by the federal law on the federal budget and acts of the Government of the Russian Federation, the Ministry of Finance of the Russian Federation and the Federal Treasury adopted in pursuance of this federal law. Secondly, it is worth noting how the procedure for treasury support of budget funds is built. The mechanism of treasury support provides for operations on personal accounts opened in the Federal Treasury with funds received from the relevant budget in the form of subsidies and budget investments, as well as funds directed to the execution of government contracts, contracts, the source of financing of which is the budget of the budgetary system of the Russian Federation. Thirdly, it is necessary to understand what prospects the institute of treasury support of budgetary funds has. Trends in the development of the institute of treasury support show that quantitative parameters will grow, including due to the use of "extended" treasury support and due to the spread of technological solutions to the level of subjects of the Russian Federation and municipalities. Conclusions. It is impossible not to say that treasury support is a new institution of budget law, considered as a comprehensive budgetary and legal instrument of publicadministration, which is used at the stage of budget execution for expenditures to exercise financial control over the implementation of government contracts, contracts, agreements by individuals and legal entities, individual entrepreneurs who are not participants in the budget process. In addition, treasury support is a tool with sufficient elasticity and relative "versatility". At its core, it allows you to strengthen control over the targeted and effective use of budget funds, ensure transparency and openness of procurement procedures and execution of state contracts; reduce unscrupulous suppliers in the chain of co-executors while ensuring proper execution of the state contract; increase financial discipline of the parties to the contract. It is also worth noting that treasury support minimizes some of the risks inherent in the use process. This institution should be considered as a system element in a larger mechanism of budget monitoring.