THEORETICAL ASPECTS TO INVESTIGATION OF BUDGET EFFICIENCY OF THE TERRITORY

Abstract

Introduction. One of the key points of our time is the impossibility of local self-government bodies exercising their powers at the expense of their own financial resources. Most of the local budgets of the regions of Ukraine are not provided with their own financial resources in sufficient quantities. Therefore, it seems relevant to search for ways to form a financially powerful base for local self-government. The crucial point in this regard is to ensure the budgetary efficiency of the territories. The purpose of this article is to investigate and to prove the theoretical foundations of the budgetary efficiency of the territory. The methodological base of the research was the developments of economic and financial science according to the study of the local budget, budgetary policy. Results. The complexity and multidimensionality of the category «budgetary efficiency» explains the presence in the modern financial and economic literature of many approaches to understanding its content. Following an integrated approach, as well as systematizing, generalizing and improving the approaches of scientists, from our point of view, the budget efficiency of the territory: 1) is a quantitative and qualitative assessment (indicator) of the effectiveness of management of local budgets of the territory (assessment and financial aspect); 2) the result of the effectiveness of local executive authorities and local self-government bodies, the success of the functioning of business entities (normative-target aspect); 3) it is a factor, catalyst and prerequisite for the growth of GRP, and therefore, in general, the financial viability of the territory, as well as the social, economic and environmental development of the territory, the modernization and capitalization of its economy (macroeconomic aspect). Conclusion. Therefore, in a general sense, budgetary efficiency is a synthesized integral indicator of the activities of territorial authorities (local governments) in the formation, distribution and use of budgetary funds for socio-ecological and economic goals of a strategic and tactical nature. This approach to interpretation broadens the content of the category of «budget efficiency of the territory».