№ 5/2018

Fìnansi Ukr. 2018 (5): 110–124https://doi.org/10.33763/finukr2018.05.110

THEORY AND HISTORY OF FINANCES

LEONENKO Petro ¹, KUZKIN Yevhen ², YUKHYMENKO Yana ³

¹State Educational and Research Organization “Academy of Financial Management”
²State Agency of Motor Roads of Ukraine
OrcID ID : https://orcid.org/0000-0002-6790-8238
³SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0001-5229-1290

Institutional environment of the budget system

Investigation of the institutional environment of the budgetary system is carried out through the glasses of the market transformation lessons in Ukraine since 1991. Using modern institutionalism theory, the article analyzes an impact of the institutional environment on the formation and using the state budget resources. Among a spectrum of tools, the author uses theories of contract, inclusive and extractive institutions. The interrelation between efficiency of the budget system and the quality of the institutional environment is revealed. The paper analyzes the nature and components of the institutional environment, interaction between them, changes in the environment under the budget system reforms. The dependence of the efficiency of the budget system on the
effectiveness of its institutions and the institutional environment is proved. The synergetic connection meaning among inclusive and extractive economic and political institutions is analyzed. Different impacts of both types of institutions on the economy and budget system are substantiated. Issues of the existence of dualism concerning the rate of formation and the change of formal and informal, inclusive and extractive institutes are highlighted. The article highlights features of budgetary decentralization in the process of increasing the importance and role of local self-government institutions and creating a new, quality institutional environment. The main factors of the formation of an effective institutional environment for the organization of the budget system in Ukraine are considered. The concept of transition from cost to performance management is proposed. The latter will facilitate the efficient use of budget funds. The need for the formation of a quality institutional environment for attracting private capital to implement important government programs based on the development of state-entrepreneurial partnership is substantiated.

Keywords:institutional environment, budget system, formal and informal institutions, inclusive and extractive institutions, budget decentralization, state-entrepreneurial partnership

JEL: H61, L32, O31

LEONENKO P. . Institutional environment of the budget system / P. . LEONENKO, Y. . Kuzkin, Y. Yukhymenko // Фінанси України. - 2018. - № 5. - C. 110-124.

Article original in Ukrainian (pp. 110 - 124)

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