Budgetary Projection in the System of Financial and Economic Regulation of Social Processes

Abstract

The purpose of the article is to reveal the role of budgetary projection in the system of financial and economic regulation of social processes within the framework of improving the efficiency of fiscal policy intended to macroeconomic stability maintenance in both countries with transformational and advanced economies. The comparative and factorial methods allowed to developthe features of the institutional environment of the budgetary progection methodology, to identify approaches for its improvement. Methodology. Substantiation of the role of budget forecasting in the system of financial and economic regulation of social processes, determination of provisions for improving its methodology is based on generalized and systematic approaches that are applied in both developed and transformational economies. An analysis of the stages of the process and the budgetary projection methods evaluation, that are used in different countries, have been carried out. Results showed that the efficient budgetary projection methodology is the basis for sound fiscal policy. The development of realistic budgetary projections facilitates justified management decisions aimed at ensuring the country financial firmness. Devia-tions from budget revenues from the projected indicators do not make it possible to achieve certain fiscal policy outcomes and, accordingly, cause a budget cut. In order to develop realistic budgetary projections, a welldesigned and coherent database is needed for all time series, necessary to analyze and project budget revenues. Time series of key determinants affecting the budget revenues level should be available at different frequencies (monthly, quarterly, annually). Where data reflecting similar economic processes by different revenue sources are available, any differences between them shall be determined by reference to their coverage and methodology. Practical implications. Budgetary projections are the basis for the formation of effective fiscal policy and the benchmark of the reproduction process. Adequate level of justification for budget projection will help to provide a dynamic balance of budgetary indicators and the budgetary system stability. Institutional changes to the budgetary projection methodology should be made on the basis of taking into account the dynamic interrelation of budgetary and macroeconomic indicators. The remarkable task here is the development of an economic and mathematical model based on the assessment of the national economy capabilities by reference to the assessment of macroeconomic proportions and the corresponding social and economic conditions of social production. Value/ originality. Developing the budgetary projection approaches in the context of improvement of the fiscal policy efficiency is an important precondition for ensuring macroeconomic stability. In order to increase the budget projection justifiability, it is advisable to make institutional changes to its methodology. Based on the methioned above, the article reveals the essence and role of the budgetary projection in the system of financial and economic regulation of social processes in the context of improving the fiscal policy effectiveness aimed at macroeconomic stability maintenance; approaches to improving the budgetary projection methodology have been identified, and it has been determined that the soundness and feasibility of budgetary projection are the basis for effective fiscal policy. The predictability of budgetary criteria, budgetary architectonics contribute to improving the efficiency of transformations in the public finance system.

Directions of development of the public finance management system

“…Стігліца [1][2][3]. Питанням управління державними фінансами, взаємоузгодженості складових системи державних фінансів присвячено праці вітчизняних вчених: С. Кучеренко [4], Л. Леваєвої [4][5], Л. Лисяк [6], І. Лук'яненко [7], Л. Мармуль [5], В. Макогон [8][9], В. Федосова [10], І. Чугунова [8] та інших. Разом з тим, на даному етапі, вагомим завданням є подальший розвиток системи управління державними фінансами.…”

Forecasting North Kalimantan Provincial Budget for Infrastructures Analysis through Economic Recovering Program

“…(Tzenios, FRSPH, & FWAMS, 2022). Similarly, Chugunov argued that developing budgetary projection approaches in the context of improving fiscal policy efficiency is an important precondition for ensuring macroeconomic stability (Chugunov & Makohon, 2020).…”

Cost Assessment for the Province of North Kalimantan via the Economic Recovery Program

“…Tzenios pointed out that in order to implement the domestic violence program as planned, funding is required and that in order to achieve significant gains, the program must attend to all needs and achieve societal results.Citation: Tzenios, FRSPH, & FWAMS (2022). In a similar vein, Chugunov stated that a crucial need for guaranteeing macroeconomic stability is the development of budgetary projection methodologies within the framework of improving the effectiveness of fiscal policy (Chugunov & Makohon, 2020).…”