INSTITUTIONAL ENVIRONMENT AND ITS INFLUENCE ON THE FORMATION AND USE OF BUDGET RESOURCES OF THE STATE
The current problems of reforming of Ukraine’s budget system in the conditions of European integration are generalized, it is also noted that in the process of reforming of budget system the basic «rules of the game» are changing, new norms and procedures, which form the basis of the new institutional environment, appear. The author systematized the features of the formation of institutional environment in European countries and disclosed its impact on the efficiency of the use of budget funds and change of the basic «rules of the game» in market conditions. The main factors of formation of effective institutional environment of budget process organization in Ukraine are disclosed, which should ensure the possibility of realization of new approaches and instruments, which will improve risk management (to prevent expensive crises), better understand the incentives in the system (motivating participants of the budget process to adhere agreements and follow the rules) and improve the ways of using private finance and initiative (responding to requirements that otherwise won’t have enough funding). The dependence of budget process efficiency on the effectiveness of its institutions and the institutional environment is proved. The concept of transition from cost management to performance management, which will promote the efficient use of budget funds, is proposed. The necessity of forming a perfect institutional environment for attracting private capital for realization of important state programs on the basis of development of state-entrepreneurial partnership is substantiated.
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Keywords: institutional environment, market institutions, state entrepreneurial
partnership, budget process, formal and informal institutes |
THEORY
Fedosov Victor
Dr. in Economy, Professor SHEI «Kyiv National Economic University named after Vadym Hetman»
Yukhumenko Petro
Dr. in Economy, Professor
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