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Management of the State-Funded Programs’ Efficiency: Methodological Bases of Development of a Program-Based Budget

Author: Natalia N. Shash, Dr. Sc. (Econ.), Prof. of Public Finance Dept., National Research University “Higher School of Economics”

Abstract: The article analyzes particularities of state­funded programs and looks at approaches to the assessment of their efficiency. Structural units and elements of efficiency of state programs are specified, the condition for efficiency, namely existence of direct interrelation between actions and indicators for assessment – is formulated. The paper reveals the principles behind efficiency assessment and lists the criteria of efficiency of the budgetary expenditure during implementation of state programs. Issues of budgetary financing of state programs are considered. It is proved that comprehensive assessment of efficiency allows for a more objective evaluation of the effect the state’s financial resources produce as well as an estimation of the efficiency of an adopted state policy in prioritized spheres.

Keywords: program-based budgeting, program budget, state-funded program, budgetary financing of state programs, state-funded programs assessment, indicators for program efficiency assessment