Mechanisms for ensuring an effective and efficient budget process: from fiscal risks to gender budgeting

Abstract

The purpose of this study is to assess the current state of ensuring an effective and efficient budget process in Ukraine. The author distinguishes between the concepts of efficiency of the budget process and effectiveness of the budget process. A hierarchy of goals is formed to determine the level of effectiveness of the budget process. An assessment of the level of achievement of the global goals of the budget process in Ukraine in the context of its effectiveness at the present stage is provided. In the course of the study, the following methods were used: the method of analysis and synthesis - to define the concept of “budget process efficiency”, methods of generalization and abstraction - to form a hierarchy of goals of the budget process to assess its efficiency in Ukraine, methods of comparison and analysis - to assess the mechanisms for ensuring efficiency and effective budget process. The quality of the budget process can be assessed by two components: efficiency and effectiveness. The absence of a clear distinction between these characteristics led to the formulation of our own definition: the effectiveness of the budget process is the ability of the budget process to achieve its goals both at the global and individual level for each stage. The effectiveness of the budget process in Ukraine can be assessed through a hierarchy of goals: the first level is global goals (uninterrupted budget financing; transparency of the budget process; public involvement in the budget process; implementation of the SDGs at all stages of the budget process; neutrality of the budget process to the political situation in the country), the second level is specific goals for each stage (unity of the expected effect and the planned result). The assessment of the achievement of global goals in the budget process in Ukraine shows, on the one hand, significant steps in the context of improving the efficiency and effectiveness of the budget process (fiscal risk management, gender-oriented budgeting, etc.), and on the other hand, highlights areas for further improvement (increased transparency, neutrality to political forces, civil society participation, etc.).