Current Budget Process in Ukraine

Abstract

Problem statement. Issues related to public funds fulfillment and their usage are always in the center of researchers’ and practitioners’ attention. Despite the detailed legislative regulation of affairs appearing from the start of all of the public funds development to the moment of their execution report, order bringing and consistency of covered by the law persons, some budget process aspects become especially important. Analysis from recent research. It is significant that L. K. Voronova, O. A. MyzukaStephanchuk, S. O. Nischimna, Z. I. Peroshchuk, K. O. Tokarieva, V. D. Chernadchuk, N. Y, Yakimchuk and others have already researched and defined the budget process and it’s problems solving. However, the need of further legislative regulation of affairs related to the income generation order by state and local community as well as their allocation between different budgets and use to ensure the implementation of the tasks and functions of the relevant actors, produces lively discussions in the designated area. The aim of the paper is the definition of the appearing current Ukrainian budget process problems. Presenting main material. The budget process consists of the appropriate stages, determined by the content and nature of the activities of state bodies, which results in such activities becoming new qualities. In Art. 19 of the Budget Code of Ukraine four stages of the budget process are established, namely: 1) drafting budgets; 2) consideration of the draft law and adoption of the law on the state budget, decisions on local budgets; 3) implementation of the budget, including amendments to the law on the State Budget of Ukraine, decisions on local budgets; 4) preparation and review of the report on the implementation of the budget and decision on it. The isolation of such stages is determined by logic, since they cover all the activities of state bodies, from the awareness of the need to implement expenditures for the corresponding needs, their forecasting, the invention of revenue sources for their coverage, etc. Despite the fact that each of the stages is relatively independent, consistently changing each other, such stages are interrelated and interdependent. The distinction between the stages of the budget process contributes to the effectiveness of the legal regulation of budgetary relations. It has been proved that the application of clause 26 of the Final and Transitional Provisions of the Budget Code of Ukraine, which provides for the implementation of certain expenses by the decision of the Cabinet of Ministers of Ukraine, based on the available financial resources of certain budgets and other public funds, without strict observance of the amounts specified in the law on the state budget the relevant year, in fact, is a change in the norms of law enshrined in the law on the state budget. This violated the fundamental principles of the functioning of the Cabinet of Ministers of Ukraine and the Verkhovna Rada of Ukraine, as well as principles for the implementation of expenditures from budgets and other public funds. Also, the number of the Constitutional Court of Ukraine decisions on the identified issue have been analyzed. Conclusions. We consider that the context of paragraph 26 of the Final and Transitional Provisions of the Budget Code of Ukraine violated the fundamental principles of the functioning of the Cabinet of Ministers of Ukraine and the Verkhovna Rada of Ukraine, as well as the principles for the implementation of expenditures from budgets and other public funds.