FINANCING OF BUDGET INSTITUTIONS: PROBLEMS AND PROSPECTS

Abstract

The current state of the budget sphere requires the substantiation of new approaches to the formation of the mechanism of financing budget institutions. Budget institutions of the socio-cultural sector are active participants in the country's economy. The search for effective forms and methods of financing determines the need to develop directions for the development of the mechanism of financing budgetary institutions of socio-cultural sphere, which meets the principles of results-oriented budgeting and market mechanisms for allocating budget resources. The purpose of the article is to substantiate the theoretical provisions and determine the directions of development of the mechanism of financing budget institutions. The methods used in the study are methods and principles of scientific knowledge, systems approach, methods of generalization of induction, deduction and synthesis. The characteristic features that distinguish budgetary institutions of the socio-cultural sphere both among budgetary institutions and among other business entities have been identified. It is substantiated that the sources of formation and directions of use of funds in budgetary institutions of socio-cultural sphere are the same, but have specifics, which is due to sectoral characteristics of institutions, organizational and legal form, combination of budget and own funding. The mechanism of financing budget institutions is a tool for implementing the financial policy of the state, so changes in its structure and content depend on the targets of the state and the legal basis. It was found that the autonomy of budget institutions is the result of transformations of the budget sector based on the concept of results-oriented budgeting and modernization of various sectors of the socio-cultural sphere. The results of the study revealed the directions of development of the mechanism of financing budgetary institutions of the socio-cultural sphere: the formation of conditions for financial and economic independence of budgetary institutions; the transition of a significant part of budgetary institutions to budgeting focused on the final results; application of innovative sources of financing activities; stimulating budgetary institutions to increase the share of extrabudgetary revenues.