BUDGET POLICY IN THE CONDITIONS OF ECONOMIC TRANSFORMATION

Abstract

In the conditions of economic changes budget policy is a significant influence lever on the socio-economic development of the country. In conditions of economic instability, the need to introduce effective budget mechanisms to ensure the functioning of the budget system is increasing. The system of budget regulation is based on a set of financial and economic relations, institutional budget elements for the selection and implementation of the main directions of budget policy, planning and forecasting key budget indicators, areas of budget resources, achieving planned socio-economic goals and objectives. The budget policy formation depends on internal and external political, economic, social factors; it should be constantly adapted to the conditions of specific economic situation. Budget policy is a dynamic process. The main tasks of the research are to reveal the conditions for the implementation of budget policy in conditions of economic instability, to substantiate the peculiarities of the formation of the expenditure part of the budget in modern conditions. The purpose of the study is to reveal the priority directions for improving the budget policy. In the course of scientific research, a set of methods and approaches were applied: systematic, comparative, statistical analysis, structuring, synthesis and analysis. The paper analyzes the current state of the budget system and the factors affecting its development. A review of the structure of budget expenditures was considered. The main directions for the further development of the budget system have been determined. Budget planning and forecasting is important for the effective implementation of budget policy. In the conditions of limited resources, the effective distribution of budget expenditures for social security, defense and security, as well as for the economic activity of the state, is extremely important. The structure of the expenditures must adapt to modern economic transformations. Equally important is increase the level of adaptability of the budget system and the speed of reaction to changes in the economy, which is important for maintaining budget balance. The results of the research can be used in the process of formation and implementation of budget policy.