Problems of Implementation of Program-Targeted Method of Budget Expenditures in the Russian Federation

Abstract

The ongoing reform of public administration and the budgetary system has increasingly focused on improving budgetary efficiency. The best method to achieve this is a program-targeted method of planning and financing budget expenditures. While earlier planning in terms of the functions of local governments did not create incentives for optimal allocation of funds and focused only on the costs of maintaining the relevant bodies and subordinate institutions, the application of program-targeted planning requires a shift in the focus of budgetary expenditures towards results. Developed countries have begun to apply these planning methods since the middle of the last century, and to date there has been a wealth of experience that can be used in the practice of the Russian Federation, for which this method of planning expenditures is still quite new and causes a number of problems and difficulties in implementation. The article presents an overview study and systematization of the problems of implementation and evaluation of the effectiveness of the program-targeted method of planning state and municipal expenditures in the Russian Federation. The author identifies main difficulties faced by the budget system in 2018-2019, makes conclusions and recommendations for its improvement in the Russian Federation.