Conceptual Foundations of Effectiveness Assessment of Budget Expenditures under Conditions of Limited Sources of Financing for Economic Growth

Abstract

The article examines theoretical and methodological approaches to effectiveness assessment of budget expenditures under conditions of tightening resource constraints and stagnation of traditional sources of economic growth. The relevance of the study is due to the necessity to rethink the conceptual framework of budgetary efficiency in modern macroeconomic situation, characterized by a high debt burden, the effect of budget rules and exhaustion of opportunities for extensive increase in government spending. The paper systematizes the existing theoretical approaches to definition of the essence of budget expenditures effectiveness, and highlights positivist, normative and institutional approaches to its assessment. The evolution of views on the effectiveness criteria of budget investments from funds development to the achievement of socially significant results and further to consideration of multiplicative effects and impact on long-term economic growth rates is considered. Special attention is paid to the analysis of contradiction between short-term budget savings and the necessity of incentive spending to overcome recessionary gaps. On the basis of modern research generalization, the author's interpretation of the category "efficiency of budget expenditures under conditions of limited sources of financing" is proposed, It integrates allocation criteria, technical and dynamic efficiency. The necessity of moving from cost-based assessment model to performance-oriented model that takes into account not only immediate results of budget funds use, but also their contribution to expansion of future tax and non-tax revenues of budget system is substantiated. The formation principles of indicators system for budgetary efficiency assessment adapted to the conditions of resource constraints are formulated. They are the principle of opportunity costs, the principle of accounting for time lag, the principle of comparability with the cost of borrowing and the principle of budgetary self-sufficiency of investment projects. Theoretical conclusions of the study can serve as a basis for improving methods of effectiveness evaluation of government programs and substantiation of priority directions of budget policy under conditions of limited financial resources.