IMPROVEMENT OF THE ECONOMIC CLASSIFICATION OF BUDGET EXPENDITURE - PROPOSAL OF AN EFFECTIVE AND EFFECTIVE SYSTEM OF CONTROL AND MANAGEMENT OF BUDGET EXPENDITURE

Abstract

There has been conducted an analysis that showed that, to date, informatization at the level of other expenditures with similar economic characteristics of operations is aggregated in five codes of economic classification of expenditures. In turn, the analysis of expenditures on information and telecommunication technologies was made in the context of the codes of economic classification of expenditures. This analysis has shown that, for some CEECs, the costs of informatization (the acquisition of ICT goods and ICT services) are decisive, although they are aggregated with other expenditures with similar economic characteristics of operations. There has been found that it should be born in mind that the budget classification provides not only the identification of budgetary movements and the unity of analytical accounting, but also a necessary tool for controlling the legality of spending of budgetary funds by their managers and recipients. In order to reduce the risks of misuse and non-transparent use of budget funds earmarked for the implementation of the relevant budget programs and the spending of budget funds for the purposes not directly foreseen by the relevant passports of the budget programs, it is advisable to expand the economic classification of budget expenditures. This will provide a unified approach to analyzing the activities of information technology spending units and clearly defining the goals and objectives for which information and telecommunication budgets are spent. The study proposes one of the ways to improve the economic classification of budget expenditures, which is related to the tendency of introducing e-governance elements into the activity of authorities at all levels and the growing influence of information and telecommunications technologies on these processes. It is shown that the introduction of new EEQs related to the expenditure on informatization will help to approximate the economic classification of expenditures adopted in Ukraine with the classification of expenditures proposed by the IMF to unify key economic indicators in the public finance system internationally. Obtaining complete and detailed information on the use of budget funds for the procurement of ICT goods and ICT services will, on the one hand, ensure the establishment of an efficient, transparent and effective system of control and management of budget expenditures, on the other hand, will reduce the risk of misuse of budget funds.