Lushko S. M., Teacher of the Department of finance and credit, Petro Mohyla Black Sea National University, Mykolayiv, Ukraine

ORCID ID: 0000-0003-4598-1319
e-mail: sveta.lushko@gmail.com

Taranenko Y. O., Student of the 3rd course, specialty 072 «Finance, banking and insurance», Petro Mohyla Black Sea National University, Mykolayiv, Ukraine

ORCID ID: 0000-0002-0072-547X
e-mail: taranenkoyanaa9@gmail.com

Expenses of the Ukrainian State Budget: Analysis of Dynamic and Structure in the Context of Functional Classification

Abstract. Introduction. The budget is the main fund of the state. It is used to perform of state-mandated functions and tasks. The level of economic and social development of the country depends on the efficiency of attracting funds and the rationality of their use. Over the years, budget policy in Ukraine has not been implemented effectively. This applies to both budget priorities and control over the implementation of the revenue and expenditure parts of the budget.

Purpose. The purpose of the article is to identify the main trends in the implementation of the state budget expenditures for 2013-2018 in terms of functional classification and to analyze changes in its structure to determine the directions of budget policy optimization.

Results. The article researches the main tendencies of implementation of the expenditure part of the State Budget of Ukraine for 2013-2018. The definition of the functional classification of expenditures is defined, its significance and necessity are substantiated. The tendency to growth of expenditures of the State Budget of the country is described and the rate of its growth is calculated. Referring to the results of the Center for Economic Strategy, it was noted that although Ukraine has a tendency to increase public expenditures, however, the percentage of GDP, which is redistributed through the consolidated budget and state trust funds, is too high, and therefore its size should be optimized. The role of budget transfers as the main tool for horizontal equalization of regional tax capacity is described. It is determined which of them are in essence the expenditures of the state budget and the dynamics of their growth. The authors also conducted a statistical analysis of the dynamics and structure of expenditures by functional classification, both aggregate and itemized. The research is supplemented by the definition of fundamental changes in the structure of the expenditure component of the State Budget and the main reasons for their changes. In order to evaluate the optimality of the distribution of the specific gravity of each function group, a comparison was made with the expenditure structure of the countries of Central and Eastern Europe, which became members of the European Union after 2004. This group of countries is a post-communist one, moreover, these countries now meet the European Union’s requirements for fiscal discipline and show economic growth and can serve as an example for Ukraine.

Conclusions. As a result, it was concluded that in Ukraine, in accordance with the functional classification of expenditures, there are articles that are underfunded and articles whose share is worthwhile. The main reasons for inefficient spending of budget funds, which are lack of functionality both in terms of the structure of the document and the process of its adoption and implementation, are described. Also, reasons for reducing the efficiency of the implementation of expenditures of the state budget were the misappropriated use of budget funds, the implementation of programs that are low efficiency, dishonest tender and public procurement, and high level of corruption in all these areas. Authors formulated the directions of optimization of fiscal policy of Ukraine in the areas of elaboration of substantiated strategic plans and control over spending of budget funds for the future period. At the end of the article conclusions from this study are made and prospects of further exploration in this direction are determined.

Keywords: Budget Resolution of Ukraine; State Budget Expenditures; Statistical Analysis of Data; Total State Expenditures; Functional Classification of Expenditures.

References:

1. The Verkhovna Rada of Ukraine (2010). The Budget Code of Ukraine (Order No. 2456-VI, July 8). Retrieved from http:// https://zakon.rada.gov.ua/laws/show/2456-17 [in Ukrainian].
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4. Ministry of Finance of Ukraine (2017). Budget Resolution of 2018-2020. Retrieved from https://minfin.gov.ua/uploads/redactor/files/%D0%9E%D0%9D%D0%91%D0%9F%202018-2020.pdf [in Ukrainian].
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