Historical aspects and features of budget formation as the country's main financial plan

Abstract

The article examines the historical aspects of budget formation as the primary financial plan for the country. The study aims to outline the conceptual framework for establishing the planned parameters of the budget as the key financial plan during the post-war period of Ukraine’s economic development. The methods used in the study are: methods of general and specific, method of cognition, methods of induction and deduction in generalising the principles of formation and historical development of the budget system of Ukraine and economic foundations of formation of budgets of different levels; methods of analysis and synthesis, statistical groupings in assessing the formation of general and special funds of the State and local budgets. The results outline the stages of Ukraine’s budgetary system development, from the era of Kyiv Rus to the present. Both positive and negative aspects are highlighted. The analysis includes the volumes and structure of the general and special funds of the state and local budgets of Ukraine for the years 2015 to 2024. Additionally, the author describes the key characteristics of the current stage of budget formation in Ukraine. In today’s environment, additional characteristics of the budget are identified: by its organisational structure, it is the leading link in the field of public finance; by the method of formation, it is an effective method of redistributing a certain part of the country’s financial resources; by its political purpose, it is the final financial result of a compromise between representative authorities and political forces regarding the approval of the country’s financial plan. Conclusions: The country’s budget revenues can be generated in two ways: through income from revenues and expenditures, or through borrowing, while considering debt obligations and the size of the budget deficit. The first option is viewed as more effective given today’s challenging economic conditions. The second option may become more viable and effective by fostering partnerships with leading global corporations to establish a common financial foundation. This approach can create the necessary resources to implement social changes and achieve the goals of sustainable economic development in Ukraine through budget expenditures.