Boiko Svitlana, PhD (Economics), Associate Professor of the Department of Finance, National University of Food Technologies, Kyiv, Ukraine
Hoshovska Valentyna, PhD (Economics), Associate Professor of the Department of Finance, Accounting and Audit, National Transport University, Kyiv, Ukraine
ORCID ID: 0000-0002-5942-5690
Boiko Nataliia, Senior Lecturer of the Department of Finance, Accounting and Audit, National Transport University, Kyiv, Ukraine
Volatility of Budget Financing of Road Economy in Ukraine
Abstract. Introduction. The critical condition of highways was the consequence of insufficient financing and the cancellation of targeted sources of financing for the road sector. The state of roads is negatively affected by the insufficient amount of financing of the road economy from the state and local budgets and the high level of its volatility.
Purpose. The purpose of the study is to substantiate the methodological principles for determining the volatility of the road economy budget financing and its assessment in the context of the current priorities of the budget expenditure part.
Results. The volatility of the road economy budget financing is understood by the authors as the degree of variability of financing of the road economy at the expense of budgetary funds. Estimation of the volatility of the road economy budget financing is proposed to be carried out on the relative indicator – the share of expenditures for road economy in budget expenditures. The inability to assess the volatility of budget financing in absolute terms is due to the high level of inflationary processes and currency fluctuations. The volatility of the share of expenditures on road economy in the expenditures of the Consolidated Budget of Ukraine was at a moderate level with differentiation of actual and planned indicators.
Conclusions. The analysis of the volatility of expenditures on road transport in the expenditure part of the budget shows the existence of fluctuations from three to six percent in the long run and the tendency to increase in the medium-term period at the level of about one percent annually. In order to reduce the level of volatility of budget financing of the road economy in Ukraine, it is proposed to amend the current legislation, namely to fix the minimum level of financial support of the branch at the expense of budgetary funds at the level of not less than eight percent for the period of realization of the State target economic program of development of highways of general use for 2018-2022 years and regional programs.
Keywords: budget priorities; budget expenditures; volatility; road economy; Consolidated Budget of Ukraine.
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Received: 22 April 2019
How to quote this article?
|Boiko Svitlana, Hoshovska Valentyna, Boiko Nataliia (2019). Volatility of Budget Financing of Road Economy in Ukraine. Modern Economics, 14(2019), 26-32. DOI: https://doi.org/10.31521/modecon.V14(2019)-04.|