The Methodical Aspects of Implementation of the Program-Target Approach in Formation of Local Budgets in Conditions of Decentralization of the State Finances

Abstract

The article is aimed at improving and further developing the methodical provisions on the use of program-target approach in the formation of local budgets in the context of decentralization of the State finances. The article defines advantages and limitations on the use of the program-target approach in the sphere of development of programs and projects of regional socio-economic development, financing of which are supposed to be realized at the expense of local budget. The sequence of stages of strategic planning of socio-economic development of the region is generalized. The approach to development and implementation of target projects and programs of regional socio-economic development, based on the integration of provisions of the program-target approach and the concept of fiscal space, is proposed. It is proved that in distribution of budget financing the potential of expansion of fiscal space should be considered as one of the key criteria of structuring and ranking of target programs, display of ability of local budget to mobilize additional sources of funding and raise funds to meet the requirements of maintaining financial stability.