BUDGET POLICY

OGON Cezar ¹

¹Accounting Chamber

Budget: interdependence of liabilities and financial capabilities of the state

The article examines the dialectical relationship and dependency of liabilities and financial capacity of the state in terms of budget formation and execution. The role and tasks of the budget at all stages of the budget process are defined. Dialectical relationship between revenues and expenditures in the context of ensuring performance of obligations concerning provision of public goods and services is analyzed and substantiated. Some areas of legislation improvement to expand financial opportunities and find ways to increase revenues, and increase government spending as a permanent cycle and uniform flow of public funds are proved. It is suggested to consider formation and use of financial resources as a holistic mechanism according to the scheme ""income — expenses — public goods”. The necessity to achieve an optimal balance between commitments and capabilities of the state, for the purpose of real public option in management decisions in the budget and public finance as a whole has been substantiated.

Keywords: budget, liabilities, financial capacity, financial stability, revenues, expenditures, public goods and taxes.

JEL: H50, H60, H61

Ogon C. . Budget: interdependence of liabilities and financial capabilities of the state / C. . Ogon // Фінанси України. - 2014. - № 2. - C. 7-18.