New theoretical approaches to assessing the use of budget funds in the Ministry of Defense of Ukraine

Abstract

This article proposes new theoretical approaches to the evaluation of budget programs (subprograms) of the Ministry of Defense of Ukraine, namely the expediency of spending funds provided for achieving the planned performance indicators of these programs (subprograms). The approaches that are used today to evaluate the use of budget funds are not entirely perfect and reflect only their actual use and deviations from the financial resources planned by the relevant budget program. Such approaches do not fully reflect the reliability of data in the processes of defense planning, budgeting and financial support of the Armed Forces of Ukraine, which confirms the relevance of the approaches in the work.

It is shown that evaluation is a process, the result of which is a specific assessment of the effectiveness of the budget program (subprogram), which is determined using the necessary indicators and a certain period (stage) of the budget process. It is the assessment that makes it possible to make appropriate management decisions for the organization and implementation of relevant measures under the budget program (subprogram), its further planning and financing.

The proposed approaches provide an opportunity for qualitative and quantitative assessment of the use of budget funds in the Ministry of Defense of Ukraine and to identify possible shortcomings in the process of their planning in order to eliminate or prevent these shortcomings both in the process of implementing programs and in the formation of prospective measures of defense planning and financial support of the Armed Forces of Ukraine.

At the same time, for a more transparent reflection of the budgeting process in conditions of limited financial resources and a full-scale invasion of the Russian Federation into Ukraine, these approaches to assessing the use of budget funds in the Ministry of Defense of Ukraine provide an opportunity to determine the assessment of the use of these funds for the implementation (planning) of budget programs (subprograms) of the Ministry of Defense, taking into account the coefficient of the life cycle cost of the subject of procurement, the coefficient of risks of using budget funds and the corresponding coefficient of necessary resources in conditions of martial law.