THE WORLD EXPERIENCE OF FORMING AND IMPLEMENTATION OF EFFECTIVE BUDGET POLICY: PRACTICE OF THE RUSSIAN FEDERATION

Abstract

Abstract. One of the actual problems of the modern stage of the development of Ukraine is
the rising of state and local budget resources, the majority of which are subsidized. In spite of
budget reforming many problems of budget system functioning, forming and implementation of
effective budget policy remain unsolved. No effective budget management has been implemented
within the last years, the basic drawbacks of which are misapplication of funds, imperfection of
the program method of funds utilization, lack of public control of funds utilization and their
plundering, dissipation of budget resources among petty administrative-territorial units.
It is no coincidence that in modern published works on financial issues the problems of further
budget reforming and increase of budget policy effectiveness has been raised. The fulfilment
of further scientific research of upgrading Ukraine’s budget policy adjusted to the world experience
especially of near abroad countries is urgent.
Theoretical and practical aspects of forming and implementation of budget policy, modern
trends of their fulfilment in conditions of globalization, following the example of the Russian
Federation have been revealed. Regulatory and legal framework of budget policy was analyzed.
The budget policy of the next fiscal year is defined by the budgetary message of the President of
Russia. The Budgetary message gives strategic and short-term landmarks of budget policy, coordinated
with the general aims and tasks of the state economic policy, determinant in the midterm
budget planning and in designing the federal budget draft for the next fiscal year.
The problems of implementation and budget policy effectiveness in the Russian Federation
have been singled out. Today the budget policy in Russia is directed at reforming a chain of
problem zones? Among which tax reform, restructuring and optimization of budget expenditures, restructuring and optimization of the income part of the budget; restructuring and optimization
of the budget expenditures; regulation of budget deficit and upgrading of budget procedures;
creation of an effective system of inter-budget relations based on the federal budget
development. To attain the tactical and strategic aims of the budget policy, determined by the priority
functions of the Russian Federation in every discrete period of territories’ evolution, the
central government tries to achieve delimitation of expendable mandates among the organs of
state power of the subjects of Russian Federation and organs of local government. The strategic
directions of budget policy directed at creating an effective mechanism of inter budget interaction
are as follows: restructuring of the budget system from the standpoint of rational
attaching for each of its levels of debit and credit mandates with orientation on one’s own tax
resources at forming local budgets, and not financial assistance; balancing of demands and duties
of state power and local authorities; legal binding of the federal level of budget mandates
in relations between subjects of the Russian Federation and municipalities; elaboration of a
united efficient methodology of estimating financial help to local and regional budgets, the establishment
of uniform regulations of organs of power work in the budget process.
In the context of exploring the experience of budget policy in the Russian Federation the directions
of transition to the stimulating budget-tax policy using the experience of Russian experience
in Ukraine. The directions of upgrading the effectiveness of domestic budget policy
were offered. The achieve the aims mentioned above one should solve a number of tasks: the intensify
fiscal discipline; the improve the management of state debt; the upgrade the effectiveness
of capital expenditures; to improve the transparency of state finances and widen the analyses of
the conditions of state sector; to implement the mid-term planning improve financial management
of the state enterprise; to fulfill complementary reforms in power engineering; infrastructural
sectors, spheres of tax and social policy.
Key words: financial policy, budget policy; budget-taxing policy; budget – system; budget
incomes; budget spending.