The investment policy of the state is an important tool for diversifying the economy. This paper analyzes the share of capital investment in GDP, the index of fixed capital investment for 2015–2019, and assesses the investment policy determinants of the state of developed countries and emerging countries. Correlation-regression analysis methods were used to determine the relationship between real GDP, the share of industrial output in GDP, and the index of fixed capital investment in countries with economies in transformation. As a result, it was determined that in the vast majority of countries studied, the increase in investment in fixed assets contributes to the acceleration of economic growth, and the level of economic growth determines the investment potential of countries; that the heterogeneity of the impact of investment on the level of economic growth in countries with transformational economies is due to their raw material orientation, insufficient level of validity and predictability of the implemented investment policy of the state; the state’s investment policy is an important tool for ensuring macroeconomic stability and stimulating economic growth in a recession. Using the data of the panels for the period from 2015 to 2019, it is substantiated that the creation of conditions for macroeconomic balance will increase business activity of enterprises, which is the result of purposeful influence of state investment policy on economic processes by ensuring quality transformation and innovation of the national economy. The obtained results show that the level of influence of the state investment policy on the level of economic growth varies significantly depending on the level of development of financial institutions in the country and the infrastructure of the financial market.
The structure of public finance in modern conditions is revealed. The dynamics of revenues and expenditures of both the consolidated and the State Budget of Ukraine in 2011–2021, as well as for five months of 2022, is studied. It is established that during the last decades, the budgets were executed with a significant deficit. With the beginning of the Russian Federation’s full-scale invasion of Ukraine, the problems of budget execution intensified. Since significant number of enterprises ceased their activities, serious problems with filling the budget and its execution in terms of expenditures arose. The decrease in revenues caused growing budget deficit and the need to find additional sources of finance to cover budget expenditures. Author’s own definition of the term "stability of the financial system" is proposed. It is substantiated that inefficient management and use of budget expenditures is a destabilizing factor for country's financial system. It is emphasized that the National Bank of Ukraine, when assessing the stability of the financial system, should take this factor into account and analyze the relationships between the major players in the financial sector, including the public finance sector. It is emphasized that in the conditions of martial law, it is necessary not to reduce budget expenditures, but to increase budget revenues instead. The ways to increase revenues through the introduction of a fair fiscal system are proposed. Emphasis is placed on the fact that in the system of public finance management, each institution must fulfill its unique role and all together they must ensure the harmony of relations, reliability, and effectiveness of the system. Budget expenditures should always be used rationally and efficiently, and in the conditions of martial law, focused primarily on the needs of the army, assistance to the victims, maintenance and restoration of critical infrastructure facilities, financing of protected budget items and priority areas of country's development.
Introduction. The low pace of socio-economic development of the country indicates signi?cant problems in ensuring the e?cient use of ?nancial resources of the state. This issue is relevant in a state of martial law, ever-increasing social needs, limited ?nancial resources. Problem Statement. Determination of the economic essence of the e?ective use of budget expenditures and the development of an e?ective methodological and organizational approach. Purpose. To generalize the available tools, theoretical knowledge, practical experience to develop certain methodological and organizational approaches to ensure the e?ectiveness of management and use of budget expenditures in modern conditions of socio-economic development of the country. Methods. General scienti?c and special methods are used: analysis, synthesis, grouping, description, modeling, comparison, theoretical generalization and abstract-logical. Results. Attention is focused on the fact that “e?ciency” as an economic category is a complex issue. Scienti?c approaches to the toolkit of criteria application and performance evaluation developed by Ukrainian and foreign scientists have been systematized. The economic essence of the e?ective use of budget expenditures and the methodological and organizational approach proposed by the author is revealed. Along with the program- target method of budgeting, it is an additional tool that will improve the mechanism of management and use of budget expenditures, will enable managers of budget funds to always achieve the goal of budget programs, investment projects, the best indicators of the country’s socio-economic development, and increase the e?ectiveness of budget policy. Conclusions. The ?nal decision on the issues of expanding knowledge about the economic essence of the e?ective use of budget expenditures, introducing the tools of the methodological-organizational approach, along with the program-target method of budgeting, depends on the state authorities. It is advisable to follow the practice of EU member states in order to ensure the transparency of the budget system, improve the budget process, increase the level of citizens’ incomes, social standards, the e?ectiveness of budget policy, and the dynamics of the country’s socio-economic development.
The legislative, normative legal acts adopted during martial law, which regulate the filling of budgets and using financial resources, are analyzed. It is established that in September 2022, compared to March, the deficit of the consolidated and state budgets increased several times. The analysis of the sources and structure of revenues and directions of state and local budgets spending for the nine months of 2022 by areas, including the study of budget programs, showed that most of the state budget expenditures were made on the country's defense, social security of the population, performing the main functions of the state, in particular, the public order maintenance, security and the exercise of powers by the judicial branch of government. Local budgets are entrusted with ensuring the educational process and financing the entire housing and communal services sector of the country. To increase significantly the efficiency and effectiveness of the use of state financial resources, it is proposed to introduce new methodological and organizational approaches in budget expenditures management. It is noted that in wartime, old organizational forms, methodological approaches are not applicable, because they not only fail to meet the requirements of market relations, including in terms of ensuring the efficiency of management and use of financial resources, but also remain a factor of danger, deformation of task performance in entire state management system. In this situation, there is an opportunity to start reforms, to apply more effective methods, principles, and means of methodological and organizational support for the activities of each government-funded, and not only such, institution and organization. This applies to both the main manager of budget funds and the manager of a lower level, recipients of budget funds, that is, from the ministry to any other institution or organization for the purpose of designing a new organizational management system based on a systemic approach to management and use of budget expenditures to improve the efficiency of using financial resources, increase the effectiveness of state's financial, budgetary and economic policy.
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