Over the past few years, the introduction of program-target method, that could improve the efficiency of planning public expenditures, has been the priority of the budget policy of the Russian Federation. The aim of this paper is to construct a model for the development of program-target budgeting. As the result of the study the development model for program-target budgeting in the constituent entities of the Russian Federation was constructed. Financial, organizational, methodological and regulatory factors were taken into account in the process of model construction. The application of this model will contribute to the growth of program-target budgeting viability and will increase the efficiency of budget expenditures.