Features of functionin of the budgetary system in countries with developed economy

• Main Author: Kseniia Hrebenyk
• Format: Article
• Language: English
• Published: Hryhorii Skovoroda University in Pereiaslav 2018-04-01
• Series: Економічний вісник університету
• Subjects: budget; budget system; budget policy; budget expenditures; budget revenues; budget regulation; economic development; budget system of foreign countries
• Online Access: https://economic-bulletin.com/index.php/journal/article/view/32

The subject of the study is the theoretical and practical principles of functioning of the budget system in developed economies. The purpose of the article is to determine the features of budget system construction in developed countries and to reveal the trends of budgetary policy in the system of social and economic development. The budget system serves as a means of realizing state functions and, in conditions of deepening globalization challenges, is a powerful tool for regulating the economic development of the administrative-territorial units and the state as a whole. Research methods. The following scientific methods are used in the work: systemic, comparison, analysis and synthesis, which together allowed to realize the conceptual unity of the research, to comprehensively analyze the object of research and obtain scientific conclusions. Research results. The peculiarities of construction of budget systems in foreign countries, which are determined by the specifics of their state, political and economic structure, as well as historical stages of formation, are substantiated. Budgeting is carried out in the medium term; local authorities have significant powers when drafting and implementing local budgets. The governments of the countries pay considerable attention to the financing and implementation of targeted social and economic development programs. The features of budget planning and forecasting in financial systems of the developed countries of the world are analyzed. The general financial policy of the governments of the countries combines its focus on increasing financial stability by increasing budget expenditures with unconditional performance of external commitments and maintaining the social orientation of fiscal policy. Considerable attention is paid to increasing the volume of investments in order to create new highly effective and cost-effective industries, and increase the efficiency of investment processes in general. Perspective forecasting of budget indicators is an important part of the budget regulation of the economy. The scientifically grounded definition of indicators taking into account the forecast trends of the main macroeconomic indicators of the national economy creates the prerequisites for ensuring sustainable economic development in the long run. The financial practices of foreign countries of the world show that budget planning and forecasting provide the opportunity to: substantiate the structure of budget revenues and establish clear priorities in the field of expenditures; improve the distribution of financial resources to achieve strategic goals of economic development; increase the responsibility of the participants in the budget process; to conduct effective financial control at each stage of the budget process. Conclusions have been reached on the growth of the value of fiscal policy in the context of globalization, since rational distribution of financial resources between sectors of the economy and priority areas of state policy is a powerful lever of sustainable economic and social development of the country. Further development was made regarding the need to use elements of financial policy in the management of the public finance system with a view to implementing social and economic policy programs. Experience and trends of long-term fiscal policy of foreign countries are relevant for Ukraine. The field of application of results. Finances. Budget policy. Budget system. Conclusions. Structural elements of the budget systems of developed countries are used by the authorities to influence various directions of economic policy, in particular: stimulation of the process of expanded reproduction, structural adjustment of the economy, acceleration of economic growth; promotion of the process of accumulation of capital and development of promising sectors of the economy; ensuring the development of scientific and technological progress through the state financial support of fundamental science and the development of knowledge-intensive industries; regulation of the rate of renewal of fixed capital; expansion or reduction of state consumption to influence the process of realization of the aggregate social product; creation of conditions for the development of the domestic financial market, formation of an effective production structure, stimulation of research and development work development; promoting the growth of the competitiveness of the national economy, accelerating scientific and technological progress, strengthening the country's scientific and technological potential, etc. With regard to the priorities of fiscal policy, the state maintains the direction of fiscal policy in the direction of social orientation of budget expenditures, in particular, the direction and modernization of measures to support socially vulnerable groups of the population. Actual is the study of the peculiarities of the functioning of budget systems and directions of financial policy of socio-economic growth in countries with developed economic system, determination of possibilities of attracting foreign experience of development of the system of public finances to the domestic financial and economic system.